Klaviyo, Inc. (KVYO) Soars to 52-Week High, Time to Cash Out?

Company Performance - Klaviyo, Inc. (KVYO) shares have increased by 10.9% over the past month and reached a new 52-week high of $39.77 [1] - The stock has gained 40.5% since the beginning of the year, outperforming the Zacks Business Services sector (17.1%) and the Zacks Technology Services industry (36.7%) [1] Earnings and Revenue - Klaviyo has a strong record of positive earnings surprises, beating earnings consensus estimates in the last four quarters [2] - In the latest earnings report on August 7, 2024, Klaviyo reported EPS of $0.15, exceeding the consensus estimate of $0.09, and beat the revenue estimate by 4.78% [2] - For the current fiscal year, Klaviyo is expected to post earnings of $0.49 per share on revenues of $915.97 million, reflecting a 36.11% change in EPS and a 31.21% change in revenues [3] - For the next fiscal year, earnings are projected to be $0.58 per share on $1.15 billion in revenues, indicating year-over-year changes of 19.64% and 25.74%, respectively [3] Valuation Metrics - Klaviyo has a Value Score of F, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] - The stock trades at 80.3X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 24.9X [6] - On a trailing cash flow basis, Klaviyo trades at 5X versus the peer group's average of 11.9X [6] Zacks Rank - Klaviyo currently holds a Zacks Rank of 2 (Buy) due to rising earnings estimates [7] - The recommendation is to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for Klaviyo shares in the near future [7] Industry Context - The Technology Services industry is positioned in the top 25% of all industries, suggesting favorable conditions for both Klaviyo and its peers [10]