Shares of Byrna Technologies Inc. (BYRN) have been strong performers lately, with the stock up 26.9% over the past month. The stock hit a new 52-week high of $25.49 in the previous session. Byrna Technologies Inc. has gained 278.3% since the start of the year compared to the 27.2% move for the Zacks Business Services sector and the 58.6% 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 while it beat the consensus revenue estimate by 0.15%.
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 B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 112.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 28X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 13.4X. 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 consider the stock's Zacks Rank, 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 fits the bill. Thus, it seems as though Byrna Technologies shares could have a bit more room to run in the near term.
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 Outbrain Inc. (OB). OB has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Outbrain Inc. beat our consensus estimate by 450%, and for the current fiscal year, OB is expected to post earnings of $0.30 per share on revenue of $237.8 million.
Shares of Outbrain Inc. have gained 31% over the past month, and currently trade at a forward P/E of 57.88X and a P/CF of 26.33X.
The Technology Services industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BYRN and OB, even beyond their own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Byrna Technologies Inc. (BYRN) : Free Stock Analysis Report
Outbrain Inc. (OB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.