Kellanova (K) Hits Fresh High: Is There Still Room to Run?

Stock Performance - Kellanova shares have risen by 0.9% over the past month and hit a new 52-week high of $81.91 in the previous session [1] - The stock has gained 1.1% since the start of the year, underperforming the Zacks Consumer Discretionary sector (14.2%) and the Zacks Consumer Products - Discretionary industry (18.8%) [1] Earnings and Revenue - Kellanova has a strong record of positive earnings surprises, not missing consensus estimates in the last four quarters [2] - In its last earnings report on October 31, 2024, Kellanova reported EPS of $0.91, beating the consensus estimate of $0.85 [2] - For the current fiscal year, Kellanova is expected to post earnings of $3.93 per share on $12.74 billion in revenues [3] - For the next fiscal year, the company is expected to earn $4.03 per share on $12.92 billion in revenues, representing year-over-year changes of 4.81% and 1.48%, respectively [3] Valuation Metrics - Kellanova trades at 20.8X current fiscal year EPS estimates, a premium to the peer industry average of 13.9X [7] - On a trailing cash flow basis, the stock trades at 18.2X versus its peer group's average of 7X [7] - The stock has a PEG ratio of 2.51, which does not place it in the top echelon of stocks from a value perspective [7] Zacks Style Scores and Rank - Kellanova has a Value Score of B, Growth Score of B, and Momentum Score of C, resulting in a VGM Score of A [6] - The company currently holds a Zacks Rank of 2 (Buy) due to rising earnings estimates [8] - Kellanova meets the recommended criteria of Zacks Rank 1 or 2 and Style Scores of A or B, suggesting potential for further gains [8]