Badger Meter (BMI) Dips More Than Broader Market: What You Should Know

In the latest trading session, Badger Meter (BMI) closed at $152.43, marking a -2.39% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.43%. On the other hand, the Dow registered a loss of 1.05%, and the technology-centric Nasdaq decreased by 0.92%.

Prior to today's trading, shares of the manufacturer of products that measure gas and water flow had gained 8.14% outpaced the Computer and Technology sector's loss of 3.21% and the S&P 500's loss of 0.5%.

Investors will be eagerly watching for the performance of Badger Meter in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.22, indicating a 6.15% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $231.56 million, reflecting a 4.21% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.03 per share and a revenue of $968.27 million, representing changes of +5.01% and +5.63%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Badger Meter. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.73% lower. Badger Meter is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Badger Meter's current valuation metrics, including its Forward P/E ratio of 31.03. This represents a premium compared to its industry average Forward P/E of 27.88.

Investors should also note that BMI has a PEG ratio of 2.51 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Instruments - Control industry held an average PEG ratio of 1.81.

The Instruments - Control industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 26% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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