Smartsheet (SMAR) Hit a 52 Week High, Can the Run Continue?

Stock Performance - Smartsheet shares have risen 8 6% over the past month and hit a new 52-week high of $55 63 [1] - The stock has gained 16 3% since the start of the year compared to the Zacks Computer and Technology sector's 25 2% and the Zacks Internet - Software industry's 24 4% [1] Earnings and Revenue - Smartsheet has not missed earnings consensus estimates in the last four quarters [2] - In the last earnings report on September 5 2024 Smartsheet reported EPS of $0 44 versus consensus estimate of $0 29 and beat the consensus revenue estimate by 0 86% [2] - For the current fiscal year Smartsheet is expected to post earnings of $1 39 per share on $1 12 billion in revenues representing a 63 53% change in EPS and a 16 74% change in revenues [3] - For the next fiscal year the company is expected to earn $1 55 per share on $1 28 billion in revenues representing year-over-year changes of 11 4% and 14 63% respectively [3] Valuation Metrics - Smartsheet has a Value Score of F Growth Score of A and Momentum Score of A resulting in a VGM Score of B [6] - The stock trades at 40X current fiscal year EPS estimates a premium to the peer industry average of 31 5X [7] - On a trailing cash flow basis the stock trades at 5X versus its peer group's average of 24 2X [7] - The stock has a PEG ratio of 1 27 [7] Zacks Rank and Style Scores - Smartsheet currently has a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions [8] - The company fits the criteria of having a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [8] Industry Comparison - Meta Platforms Inc (META) a peer in the industry has a Zacks Rank of 2 (Buy) Value Score of C Growth Score of B and Momentum Score of A [9] - Meta Platforms Inc beat the consensus estimate by 9 79% last quarter and is expected to post earnings of $21 36 per share on revenue of $161 62 billion for the current fiscal year [10] - Meta Platforms Inc shares have gained 17 5% over the past month and trade at a forward P/E of 27 75X and a P/CF of 30 06X [10] - The Internet - Software industry is in the top 29% of all industries indicating favorable conditions for Smartsheet and Meta Platforms Inc [11]