MKS Inc. (MKSI) Hits Fresh High: Is There Still Room to Run?

Company Performance - MKS has seen a significant increase in its stock price, rising 15.6% over the past month and reaching a new 52-week high of $157.23 [1] - Year-to-date, MKS has gained 48.7%, outperforming the Zacks Computer and Technology sector's 25.1% and the Zacks Electronics - Miscellaneous Products industry's 35.8% [1] Earnings and Revenue Expectations - MKS has a strong track record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - In the latest earnings report, MKS reported EPS of $1.93, surpassing the consensus estimate of $1.80 [2] - For the current fiscal year, MKS is expected to post earnings of $7.08 per share on revenues of $3.82 billion, reflecting a 7.6% increase in EPS and a 6.47% increase in revenues [3] - For the next fiscal year, earnings are projected to be $8.24 per share on revenues of $3.99 billion, indicating a year-over-year change of 16.39% in EPS and 4.42% in revenues [3] Valuation Metrics - MKS currently trades at 21.9 times the current fiscal year EPS estimates, slightly below the peer industry average of 22.7 times [7] - On a trailing cash flow basis, MKS trades at 12.7 times compared to the peer group's average of 16.2 times [7] - The stock has a PEG ratio of 1.77, which does not place it among the top tier of stocks from a value perspective [7] Zacks Rank and Style Scores - MKS holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The company has a Value Score of C, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of B [6] Industry Comparison - The Electronics - Miscellaneous Products industry is performing well, ranking in the top 20% of all industries, providing a favorable environment for both MKS and its peer, Flex Ltd. [11] - Flex Ltd. also has a Zacks Rank of 2 (Buy) and shows strong earnings potential, expected to post earnings of $3.14 per share on revenues of $27.05 billion for the current fiscal year [10]