Have you been paying attention to shares of Byrna Technologies Inc. (BYRN)? Shares have been on the move with the stock up 8.4% over the past month. The stock hit a new 52-week high of $32.58 in the previous session. Byrna Technologies Inc. has gained 6.5% since the start of the year compared to the 28.2% move for the Zacks Business Services sector and the 65.1% return for the Zacks Technology Services industry.
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 9, 2024, Byrna Technologies reported EPS of $0.04 versus consensus estimate of $-0.01.
For the current fiscal year, Byrna Technologies is expected to post earnings of $0.23 per share on $85.79 million in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.34 per share on $103.2 million in revenues. This represents a year-over-year change of 23.68% and 20.29%, respectively.
Byrna Technologies may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Byrna Technologies has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 133.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 13.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Byrna Technologies currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Byrna Technologies passes the test. Thus, it seems as though Byrna Technologies shares could have potential in the weeks and months to come.
Shares of BYRN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is GigaCloud Technology Inc. (GCT). GCT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. GigaCloud Technology Inc. beat our consensus estimate by 46.27%, and for the current fiscal year, GCT is expected to post earnings of $3.38 per share on revenue of $1.16 billion.
Shares of GigaCloud Technology Inc. have gained 19.2% over the past month, and currently trade at a forward P/E of 6.72X and a P/CF of 9.55X.
The Technology Services industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BYRN and GCT, even beyond their own solid fundamental situation.
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