Tactile Systems Technology, Inc. (TCMD) Hit a 52 Week High, Can the Run Continue?

Company Overview - Tactile Systems Technology (TCMD) shares have increased by 31% over the past month, reaching a new 52-week high of $19.55 [1] - The stock has gained 32.3% year-to-date, outperforming the Zacks Medical sector's 1% and the Zacks Medical - Instruments industry's 5.3% returns [1] Earnings Performance - TCMD has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters [2] - In the latest earnings report on November 4, 2024, TCMD reported EPS of$ 0.24, exceeding the consensus estimate of $0.18 [2] Financial Projections - For the current fiscal year, TCMD is expected to post earnings of$ 0.65 per share on revenues of $292.84 million, reflecting a -48.03% change in EPS and a 6.71% change in revenues [3] - For the next fiscal year, earnings are projected to be$ 0.86 per share on revenues of $322.36 million, indicating a year-over-year change of 31.44% in EPS and 10.08% in revenues [3] Valuation Metrics - TCMD currently trades at 28.9X current fiscal year EPS estimates, slightly above the peer industry average of 28.8X [7] - On a trailing cash flow basis, the stock trades at 12.3X compared to the peer group's average of 17.3X [7] Zacks Rank and Style Scores - TCMD holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of A, with Growth and Momentum Scores of C, resulting in a combined VGM Score of B [6][9] Industry Comparison - Fresenius Medical Care AG & Co. KGaA (FMS) is a notable peer with a Zacks Rank of 2 (Buy) and similar style scores [10] - FMS is expected to post earnings of$ 1.87 per share on revenues of $21.02 billion for the current fiscal year, having beaten consensus estimates by 7.14% last quarter [11] - The Medical - Instruments industry is performing well, ranking in the top 25% of all industries, providing favorable conditions for both TCMD and FMS [12]