Northwest Pipe Company (NWPX) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Northwest Pipe Co. (NWPX) has shown significant stock performance, with a 26.1% increase over the past month and an 82.5% rise since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Metal Products - Procurement and Fabrication industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.02 against a consensus estimate of$0.85 in its latest earnings report on October 30, 2024, and beating revenue estimates by 2.68% [2]. - For the current fiscal year, Northwest Pipe Co. is projected to achieve earnings of $3.31 per share on revenues of$491.59 million, reflecting a 58.37% increase in EPS and a 10.63% increase in revenues [3]. - The next fiscal year forecasts earnings of $3.49 per share on revenues of$495.79 million, indicating a year-over-year change of 5.34% in EPS and 0.86% in revenues [3]. Valuation Metrics - The stock currently trades at 16.7 times the current fiscal year EPS estimates, which is above the peer industry average of 16.2 times [7]. - On a trailing cash flow basis, the stock trades at 15 times compared to the peer group's average of 8.8 times, and it has a PEG ratio of 3.33, suggesting it is not among the top value stocks [7]. Zacks Rank and Style Scores - Northwest Pipe Co. holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [8]. - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B, indicating potential for investors [6][9].