United Therapeutics Corporation (UTHR) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - United Therapeutics has shown significant stock performance, with an 11.6% increase over the past month and a 46.2% rise since the beginning of the year, outperforming both the Zacks Medical sector and the Zacks Medical - Drugs industry [1][2]. Financial Performance - For the current fiscal year, United Therapeutics is projected to achieve earnings of $24.85 per share on revenues of $2.71 billion, reflecting a 25.44% increase in EPS and a 16.46% increase in revenues [2]. - The next fiscal year forecasts earnings of $27.25 per share on revenues of $2.85 billion, indicating a year-over-year change of 9.65% in EPS and 5.16% in revenues [2]. Valuation Metrics - The stock trades at 12.9 times the current fiscal year EPS estimates, below the peer industry average of 15.2 times [7]. - On a trailing cash flow basis, the stock trades at 14.6 times, compared to the peer group's average of 8.7 times [7]. - The PEG ratio stands at 1.4, which does not position the company among the top value stocks [7]. Style Scores - United Therapeutics has a Value Score of B, with Growth and Momentum Scores both rated A, resulting in a combined VGM Score of A [9]. Zacks Rank - The stock holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [10]. - The recommendation suggests that stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B are favorable, indicating potential for further gains for United Therapeutics [11]. Earnings Surprises - The company has a strong track record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [12]. - In the latest earnings report on May 1, 2024, United Therapeutics reported an EPS of $6.17, surpassing the consensus estimate of $5.63 [12].