Somnigroup International Inc. (SGI) Hit a 52 Week High, Can the Run Continue?

Core Insights - Somnigroup International (SGI) has shown strong stock performance, with a 9% increase over the past month and a 61% gain since the start of the year, outperforming both the Zacks Retail-Wholesale sector and the Zacks Retail - Home Furnishings industry [1][3]. Financial Performance - The company has consistently beaten earnings estimates, reporting an EPS of $0.95 against a consensus estimate of $0.85 in its last earnings report [2]. - For the current fiscal year, Somnigroup International is projected to achieve earnings of $2.69 per share on revenues of $7.46 billion, reflecting a 5.49% increase in EPS and a 51.22% increase in revenues [3]. - The next fiscal year forecasts earnings of $3.39 per share on revenues of $7.84 billion, indicating a year-over-year change of 25.95% in EPS and 5.18% in revenues [3]. Valuation Metrics - The stock trades at a valuation of 33.9 times the current fiscal year EPS estimates, which is above the peer industry average of 22.3 times [7]. - On a trailing cash flow basis, the stock trades at 24 times compared to the peer group's average of 14.7 times, and it has a PEG ratio of 2 [7]. Style Scores and Zacks Rank - Somnigroup International has a Value Score of C, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of B [6]. - The stock currently holds a Zacks Rank of 2 (Buy), driven by rising earnings estimates, which aligns with the recommendation for investors to select stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [8][9].