Itron Predicts Strong EPS Growth Ahead of Earnings Release

In a recent report, Itron's performance indicates promising growth, with predicted EPS of $1.13 and revenue increase of 6.32%. The company's current Forward P/E ratio suggests it may be undervalued compared to industry peers, sparking investor interest as the market anticipates its earnings disclosure.

Date: 02-10-2024

AI Rating: 7

The report details Itron's (ITRI) closing stock price of $105.08, which represents a decline of -1.62% from the previous day, reflecting a lag behind the S&P 500's slight loss of 0.93%. Despite this daily drop, Itron has seen a monthly gain of 4.49%, outperforming both the Computer and Technology sector and the S&P 500.

Interestingly, the upcoming earnings disclosure for Itron has generated anticipation among investors, with forecasts indicating an impressive EPS of $1.13, signifying a robust growth rate of 15.31% year-over-year. Revenue estimates also appear promising, anticipating $596.21 million—a 6.32% increase from the previous year.

For the entire fiscal year, Itron's earnings are projected at $4.58 per share alongside expected revenue of $2.41 billion, marking notable shifts of +36.31% and +10.73%, respectively, from the last year. These forecasts are essential indicators that could positively affect the stock price, as strong earnings and revenue growth may entice more investors.

However, Itron's recent EPS estimate revisions reflect a decrease of 0.22%, and the current Zacks Rank stands at #3 (Hold), which generally implies a lack of significant upward momentum. It's crucial to consider that estimate revisions can heavily influence near-term share price movements.

Valuation metrics also provide insight into Itron's stock potential. Currently, it trades at a Forward P/E ratio of 23.32, which is lower than the industry average of 26.86, potentially indicating an undervalued stock. Additionally, the PEG ratio is at 0.9 compared to the industry average of 2.74, suggesting that the stock's earnings growth is highly attractive when juxtaposed with its valuation.

Overall, the report emphasizes an optimistic outlook for Itron, supported by strong earnings potential, favorable revenue growth expectations, and appealing valuation metrics. These factors combined may create an attractive investment opportunity for those looking to capitalize on expected performance ahead.

Stocks: ITRI