Impinj Gains 18% in 3 Months: Is the Stock Worth Buying?

Core Insights - Impinj's shares have increased by 17.6% over the past three months, outperforming the Zacks Computer & Technology sector and the Zacks Electronics - Semiconductors industry, which grew by 4.5% and 1.3% respectively [1] - The stock's performance is attributed to rising demand for its products, a broader customer base, and successful large-scale RFID solution deployments [2] Revenue Growth - Impinj's Endpoint ICs segment generated $81 million in Q3 2024, reflecting a significant 67% year-over-year growth [3] - Strong demand in supply chain and logistics sectors led to record unit volumes and exceeded expectations for endpoint IC product revenues [4] - Growth in the retail general merchandise segment and increased demand in apparel and long-tail applications contributed to overall revenue and financial performance [6] Market Expansion and Product Development - The company is expanding its market reach and enhancing product offerings, aligning with its vision of connecting billions of items through RFID technology, positioning itself well within the IoT ecosystem [7] - Impinj is entering the food tagging sector, focusing on quick-service restaurants and grocery pilot programs, which is expected to be a larger market than its current segments [8] - Shipments of Impinj's M800 IC have more than doubled for three consecutive quarters, indicating strong market acceptance [8] Software and Cloud Services - The company is investing in software and cloud services to drive long-term growth and revenue, with successful rollouts among Fortune 500 companies strengthening its enterprise market presence [9] Earnings Estimates - The Zacks Consensus Estimate for Q4 2024 earnings is 47 cents per share, revised upward by 11.9% in the past 60 days, indicating a remarkable year-over-year growth of 422.2% [10] - The consensus for Q4 2024 revenues is $92.80 million, reflecting a year-over-year growth of 31.4% [10] - For 2024, the revenue estimate is $367.30 million, implying a year-over-year growth of 19.43%, with earnings pegged at $2.05 per share, indicating a significant year-over-year growth of 192.9% compared to 2023 [11] Investment Potential - Impinj currently holds a Zacks Rank 1 (Strong-Buy) and has a Growth Score of A, suggesting it is a compelling investment opportunity [12]