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Badger Meter Set to Release Earnings, EPS Expected to Rise

Badger Meter (BMI) is anticipated to report earnings of $1.01 per share with a notable 14.77% increase year-over-year. The company's strong revenue growth forecast indicates positive momentum ahead, even amidst a slight decline in stock price.

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AI Rating:   7

Badger Meter (BMI) is currently priced at $218.71, showing a minor decline of -0.21% from the previous trading session. This slight dip is in contrast to the overall market, where the S&P 500 gained 0.25%, along with the Dow and Nasdaq showing gains of 0.2% and 0.56%, respectively.

In the past month, Badger Meter's stock has risen by 6.97%, outperforming both the Computer and Technology sector, which experienced a 0.11% loss, and the S&P 500's gain of 1.65%. This suggests a strong positive sentiment surrounding the company.

The forthcoming earnings release is generating significant interest, with expectations set at an EPS of $1.01, reflecting a year-over-year growth of 14.77%. Moreover, revenue expectations stand at $208.48 million, indicating a robust increase of 11.97% compared to the previous year. These figures indicate strong fundamentals that could influence investor sentiment positively.

For the entire fiscal year, anticipated earnings of $4.09 per share and revenue of $821.88 million suggest a growth increase of +30.25% and +16.81% year-over-year, respectively. Such forecasts are critical for investors looking at long-term value as they indicate a healthy growth trajectory.

Furthermore, analysts should keep an eye on estimate revisions that typically indicate the company's operational performance. A positive recent trend, with EPS estimates moving 0.77% higher, represents growing analyst confidence in the company, which is beneficial for share price momentum.

Currently, Badger Meter holds a Zacks Rank of #3 (Hold), which reflects a neutral sentiment from analysts about the stock's short-term performance.

On the valuation front, with a Forward P/E ratio of 53.61, Badger Meter is considerably higher than the industry average of 26.21. This indicates that the stock might be overvalued relative to peers, which could also weigh on investor decisions. Moreover, the PEG ratio of 2.99 is higher than the industry’s average of 2.37, further suggesting that while growth is expected, investors will need to pay a premium for it.

Overall, the performance metrics outlined in the report indicate that positive earnings and revenue growth could propel Badger Meter's stock price forward, although the high valuation multiples may raise caution among some investors.

Stocks:  BMI