Radware Ltd. (RDWR) Hits Fresh High: Is There Still Room to Run?

Company Performance - Radware's shares have increased by 11.8% over the past month, reaching a new 52-week high of $27.11 [1] - Year-to-date, Radware has gained 18.1%, outperforming the Zacks Computer and Technology sector's 1.1% and the Zacks Internet - Software industry's 11.2% [1] Earnings and Revenue Expectations - Radware has consistently exceeded earnings estimates, reporting EPS of $0.27 against a consensus estimate of $0.23 in its last earnings report [2] - For the current fiscal year, Radware is projected to achieve earnings of $1.05 per share on revenues of $295.2 million, reflecting a 20.69% increase in EPS and a 7.39% increase in revenues [3] - The next fiscal year is expected to see earnings of $1.13 per share on $314 million in revenues, indicating year-over-year changes of 7.62% and 6.37%, respectively [3] Valuation Metrics - Radware's current trading metrics show a P/E ratio of 25.3X for the current fiscal year, below the peer industry average of 27.4X [7] - On a trailing cash flow basis, Radware trades at 47.5X compared to the peer group's average of 25.5X, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - Radware holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, aligning with investment recommendations for stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [8] - The company has a Value Score of D, while its Growth and Momentum Scores are A and B, respectively, resulting in a combined VGM Score of B [6] Industry Context - The Internet - Software industry ranks in the top 22% of all industries, indicating favorable conditions for both Radware and its peers [11] - Creative Realities, Inc. (CREX), a peer company, has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, gaining 62.6% over the past month [9][10]