Biote Corp : Td Cowen Raises Target Price To $8 From $7

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is biote Corp. (BTMD). BTMD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.86, while its industry has an average P/E of 21.98. Over the past 52 weeks, BTMD's Forward P/E has been as high as 19.29 and as low as -54.89, with a median of 13.65.

Finally, our model also underscores that BTMD has a P/CF ratio of 16.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 38.18. Over the past 52 weeks, BTMD's P/CF has been as high as 61.62 and as low as -18.32, with a median of 17.82.

These are just a handful of the figures considered in biote Corp.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BTMD is an impressive value stock right now.

Zacks Investment Research

Biote Corp. (BTMD) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 266.67%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.14, delivering a surprise of 55.56%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

biote Corp., which belongs to the Zacks Medical - Products industry, posted revenues of $51.38 million for the quarter ended September 2024, in line with the Zacks Consensus Estimate. This compares to year-ago revenues of $45.56 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Biote Corp. Shares have added about 16.4% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for biote Corp.

While biote Corp. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for biote Corp. Favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $54.24 million in revenues for the coming quarter and -$0.10 on $201.83 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Medical sector, The Cooper Companies (COO), has yet to report results for the quarter ended October 2024.

This surgical and contact lens products maker is expected to post quarterly earnings of $1 per share in its upcoming report, which represents a year-over-year change of +14.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

The Cooper Companies' revenues are expected to be $1.03 billion, up 10.8% from the year-ago quarter.

Zacks Investment Research