Spire Global, Inc. (SPIR) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Spire Global, Inc. (SPIR)? Shares have been on the move with the stock up 30.4% over the past month. The stock hit a new 52-week high of $19.4 in the previous session. Spire Global, Inc. has gained 104.7% since the start of the year compared to the -0.9% move for the Zacks Aerospace sector and the -3.6% return for the Zacks Aerospace - Defense industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 6, 2024, Spire reported EPS of $-0.35 versus consensus estimate of $-0.61 while it missed the consensus revenue estimate by 5.16%.
For the current fiscal year, Spire is expected to post earnings of -$0.09 per share on $140.73 million in revenues. This represents a 95.93% change in EPS on a 33.13% change in revenues. For the next fiscal year, the company is expected to earn $0.96 per share on $182.03 million in revenues. This represents a year-over-year change of 1166.67% and 29.35%, respectively.
Valuation Metrics
Spire may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Spire has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Spire currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Spire fits the bill. Thus, it seems as though Spire shares could have a bit more room to run in the near term.
How Does SPIR Stack Up to the Competition?
Shares of SPIR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Textron Inc. (TXT). TXT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of F.
Earnings were strong last quarter. Textron Inc. beat our consensus estimate by 4.58%, and for the current fiscal year, TXT is expected to post earnings of $6.27 per share on revenue of $14.64 billion.
Shares of Textron Inc. have gained 11.3% over the past month, and currently trade at a forward P/E of 15.02X and a P/CF of 12.12X.
The Aerospace - Defense industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SPIR and TXT, even beyond their own solid fundamental situation.
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