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MYR (MYRG) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of MYR Group (MYRG)? Shares have been on the move with the stock up 10.1% over the past month. The stock hit a new 52-week high of $97.3 in the previous session. MYR Group has gained 56.5% since the start of the year compared to the 2.2% move for the Zacks Utilities sector and the 56.5% return for the Zacks Electric Construction industry.

What's Driving the Outperformance?

The stock has an impressive 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 April 28, 2021, MYR reported EPS of $1.17 versus consensus estimate of $0.63 while it beat the consensus revenue estimate by 12.16%.

For the current fiscal year, MYR is expected to post earnings of $4.38 per share on $2.35 billion in revenues. This represents a 25.86% change in EPS on a 4.56% change in revenues. For the next fiscal year, the company is expected to earn $4.7 per share on $2.48 billion in revenues. This represents a year-over-year change of 7.42% and 5.42%, respectively.

Valuation Metrics

MYR 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 has run ahead of itself.

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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

MYR has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 21.5X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 15X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, MYR currently has a Zacks Rank of #1 (Strong 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 MYR meets the list of requirements. Thus, it seems as though MYR shares could have potential in the weeks and months to come.

How Does MYR Stack Up to the Competition?

Shares of MYR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Pampa Energia (PAM), Atlantica Yield (AY), and Duke Energy (DUK), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.

The Zacks Industry Rank is in the top 4% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MYR, even beyond its own solid fundamental situation.


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MYR Group, Inc. (MYRG): Free Stock Analysis Report
 
Duke Energy Corporation (DUK): Free Stock Analysis Report
 
Pampa Energia S.A. (PAM): Free Stock Analysis Report
 
Atlantica Yield PLC (AY): Free Stock Analysis Report
 
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