Badger Meter, Inc. (BMI) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Badger Meter (BMI) has shown strong stock performance, with a 5% increase over the past month and a 49.4% gain since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Instruments - Control industry [1][2]. Financial Performance - Badger Meter reported an EPS of $1.08 in its latest earnings report, exceeding the consensus estimate of $1.02, although it missed the revenue estimate by 0.28% [2]. - For the current fiscal year, the company is projected to achieve earnings of $4.19 per share on revenues of $820.32 million, reflecting a 33.44% increase in EPS and a 16.59% increase in revenues [3]. - The next fiscal year forecasts earnings of $4.74 per share on revenues of $887.29 million, indicating year-over-year changes of 13.22% in EPS and 8.16% in revenues [3]. Valuation Metrics - Badger Meter's current valuation metrics indicate a premium, trading at 55.1X current fiscal year EPS estimates compared to the peer industry average of 25.2X, and at 56.1X on a trailing cash flow basis versus an average of 21.8X for peers [7]. - The stock has a PEG ratio of 2.9, which does not place it among the top value stocks [7]. Zacks Rank and Style Scores - Badger Meter holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8]. - The stock has a Value Score of C, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6][9].