Badger Meter (BMI) Gains But Lags Market: What You Should Know

In the latest close session, Badger Meter (BMI) was up +2.87% at $152.35. The stock fell short of the S&P 500, which registered a gain of 2.91% for the day. Meanwhile, the Dow gained 2.49%, and the Nasdaq, a tech-heavy index, added 3.83%.

Heading into today, shares of the manufacturer of products that measure gas and water flow had lost 2.69% over the past month, outpacing the Computer and Technology sector's loss of 9.45% and the S&P 500's loss of 7.64%.

The investment community will be paying close attention to the earnings performance of Badger Meter in its upcoming release. On that day, Badger Meter is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 6.15%. Simultaneously, our latest consensus estimate expects the revenue to be $231.56 million, showing a 4.21% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.03 per share and a revenue of $968.27 million, indicating changes of +5.01% and +5.63%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Badger Meter. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Badger Meter boasts a Zacks Rank of #4 (Sell).

Looking at its valuation, Badger Meter is holding a Forward P/E ratio of 29.43. This denotes a premium relative to the industry average Forward P/E of 26.22.

We can additionally observe that BMI currently boasts a PEG ratio of 2.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Instruments - Control industry stood at 1.68 at the close of the market yesterday.

The Instruments - Control industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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