Motorola Solutions, Inc. (MSI) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Motorola's stock has shown strong performance, with a 27.3% increase year-to-date, outperforming both the Zacks Computer and Technology sector and the Zacks Wireless Equipment industry [1] Financial Performance - Motorola reported an EPS of $3.24 in its last earnings report, exceeding the consensus estimate of $3.01, and beat revenue estimates by 1.53% [2] - For the current fiscal year, Motorola is projected to achieve earnings of $13.09 per share on revenues of $10.69 billion, reflecting a 9.54% increase in EPS and a 7.13% increase in revenues [3] - The next fiscal year forecasts earnings of $14.15 per share on $11.29 billion in revenues, indicating year-over-year changes of 8.04% and 5.59%, respectively [3] Valuation Metrics - Motorola's current valuation metrics indicate a premium, trading at 30.4X current fiscal year EPS estimates compared to the peer industry average of 17.2X [7] - The stock trades at 29.4X trailing cash flow, while the peer group's average is 14.3X, and it has a PEG ratio of 3.21, suggesting it is not in the top tier from a value perspective [7] Style Scores - Motorola has a Value Score of D, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B [6] Zacks Rank - Motorola holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors looking for stocks with strong potential for gains [8]