Badger Meter (BMI) Increases Yet Falls Behind Market: What Investors Need to Know

Company Performance - Badger Meter (BMI) closed at $215.17, with a +0.57% change from the previous day, underperforming the S&P 500's daily gain of 1% [1] - The stock has decreased by 2.06% over the past month, which is better than the Computer and Technology sector's loss of 4.13% and the S&P 500's loss of 2.14% [1] Upcoming Financial Results - Badger Meter is set to announce its earnings on January 31, 2025, with an expected EPS of$ 1, reflecting a 19.05% increase year-over-year [2] - The consensus estimate for revenue is $198.92 million, indicating a 9.04% increase compared to the same quarter of the previous year [2] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for Badger Meter are important as they reflect short-term business dynamics, with positive changes indicating analyst optimism [3] - The Zacks Rank system, which incorporates these estimate changes, has shown a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [4][5] Valuation Metrics - Badger Meter is currently trading at a Forward P/E ratio of 45.12, which is a premium compared to the industry's average Forward P/E of 23.02 [6] - The company has a PEG ratio of 2.37, aligning with the average PEG ratio of the Instruments - Control industry [6] Industry Context - The Instruments - Control industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 173, placing it in the bottom 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]