Weave Communications, Inc. (WEAV) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Weave Communications, Inc. has shown strong stock performance, with a 7.1% increase over the past month and a 23.6% gain since the start of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Communication - Network Software industry [1] Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $0.03 in its latest earnings report, surpassing the consensus estimate of $0 [2] - For the current fiscal year, Weave Communications is projected to achieve earnings of $0.04 per share on revenues of $203.52 million, reflecting a 133.33% increase in EPS and a 19.39% increase in revenues [3] - For the next fiscal year, the expected earnings are $0.11 per share on revenues of $237.01 million, indicating a year-over-year growth of 175% in EPS and 16.45% in revenues [3] Valuation Metrics - The stock currently trades at a high valuation of 333.7X current fiscal year EPS estimates, significantly above the peer industry average of 20X [7] - On a trailing cash flow basis, the stock trades at 5X compared to the peer group's average of 7.1X, suggesting it does not rank among the top stocks from a value perspective [7] Style Scores and Zacks Rank - Weave Communications has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] - The company holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - Given the combination of Zacks Rank and Style Scores, Weave Communications appears to have potential for future growth [9]