Badger Meter (BMI) Laps the Stock Market: Here's Why

Badger Meter (BMI) closed the most recent trading day at $136.02, moving +2.58% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 1.18%, and the technology-dominated Nasdaq saw an increase of 1.4%.

The manufacturer of products that measure gas and water flow's shares have seen a decrease of 4.91% over the last month, not keeping up with the Computer and Technology sector's gain of 3.99% and the S&P 500's gain of 2.46%.

Investors will be eagerly watching for the performance of Badger Meter in its upcoming earnings disclosure. In that report, analysts expect Badger Meter to post earnings of $1.21 per share. This would mark year-over-year growth of 1.68%. Meanwhile, the latest consensus estimate predicts the revenue to be $240.55 million, indicating a 2.08% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.5 per share and revenue of $912.38 million, indicating changes of -6.05% and -0.47%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Badger Meter. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.73% higher. Currently, Badger Meter is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Badger Meter is holding a Forward P/E ratio of 29.44. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 29.44.

Meanwhile, BMI's PEG ratio is currently 3.27. 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 Instruments - Control was holding an average PEG ratio of 2.27 at yesterday's closing price.

The Instruments - Control industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

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