Have you been paying attention to shares of Byrna Technologies Inc. (BYRN)? Shares have been on the move with the stock up 33.9% over the past month. The stock hit a new 52-week high of $22.12 in the previous session. Byrna Technologies Inc. has gained 212.8% since the start of the year compared to the 26.1% move for the Zacks Business Services sector and the 55.3% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
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%.
For the current fiscal year, Byrna Technologies is expected to post earnings of $0.17 per share on $81.91 million in revenues. This represents a 194.44% change in EPS on a 92.08% change in revenues. For the next fiscal year, the company is expected to earn $0.20 per share on $97.3 million in revenues. This represents a year-over-year change of 17.65% and 18.79%, respectively.
Valuation Metrics
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. The idea behind the style scores is to help investors 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 117.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 27.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 12.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
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 passes the test. Thus, it seems as though Byrna Technologies shares could have potential in the weeks and months to come.
How Does BYRN Stack Up to the Competition?
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 CoreCard Corporation (CCRD). CCRD has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. CoreCard Corporation beat our consensus estimate by 76.47%, and for the current fiscal year, CCRD is expected to post earnings of $0.92 per share on revenue of $55.98 million.
Shares of CoreCard Corporation have gained 49.1% over the past month, and currently trade at a forward P/E of 33.88X and a P/CF of 16.38X.
The Technology Services industry is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BYRN and CCRD, even beyond their own solid fundamental situation.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Byrna Technologies Inc. (BYRN) : Free Stock Analysis Report
CoreCard Corporation (CCRD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
