SolarWinds (SWI) Hit a 52 Week High, Can the Run Continue?
solarwindssolarwinds(US:SWI) ZACKS·2024-11-07 15:20

Company Performance - SolarWinds shares have increased by 6% over the past month, reaching a new 52-week high of $14.03, and have gained 12% since the start of the year [1] - The company reported EPS of $0.27 in its last earnings report, exceeding the consensus estimate of $0.25 [2] - For the current fiscal year, SolarWinds is expected to post earnings of $1.09 per share on revenues of $787.36 million, reflecting a 23.86% change in EPS and a 3.77% change in revenues [3] Valuation Metrics - SolarWinds has a Value Score of B, a Growth Score of C, and a Momentum Score of B, resulting in a combined VGM Score of B [6] - The stock trades at 12.8X current fiscal year EPS estimates, significantly lower than the peer industry average of 32.9X, and at 14.2X on a trailing cash flow basis compared to the peer group's average of 27.4X [7] Zacks Rank - SolarWinds holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, indicating potential for further price appreciation [8] Industry Comparison - The Internet - Software industry is performing well, ranking in the top 25% of all industries, providing favorable conditions for both SolarWinds and its peer Twilio Inc. [11]