Itron (ITRI) Recently Broke Out Above the 20-Day Moving Average

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores?

The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value Score

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth Score

While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum Score

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM Score

If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank

The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Itron (ITRI)

Founded in 1977 and headquartered in Liberty Lake, WA, Itron Inc is a technology and services company and one of the leading global suppliers of a wide range of standard, advanced, and smart meters and meter communication systems, including networks and communication modules, software, devices, sensors, data analytics and services to the utility and municipal sectors.

ITRI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. ITRI has a Momentum Style Score of B, and shares are up 13.6% over the past four weeks.

Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.58 to $5.17 per share. ITRI also boasts an average earnings surprise of 49.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ITRI should be on investors' short list.

Zacks Investment Research

Dolby Laboratories, Inc DLB reported fourth-quarter fiscal 2024 results, with non-GAAP earnings per share (EPS) of 81 cents compared with 65 cents reported in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 68 cents. Lower tax rates and higher gross margins were primary growth drivers.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Total revenues were $304.8 million, up from $290.6 million in the year-ago quarter. The uptick was caused by increased adoption of Dolby Atmos and Dolby Vision. However, the top line missed the Zacks Consensus Estimate by 0.3%.

Dolby Laboratories Price, Consensus and EPS Surprise

Dolby Laboratories price-consensus-eps-surprise-chart | Dolby Laboratories Quote

With a strong foothold in technologies like Dolby Atmos and Dolby Vision, the GE Licensing acquisition strengthening the imaging patent portfolio and a rising presence in real-time interactive streaming via Dolby.io, the company is poised to accelerate its growth and innovation in fiscal 2025.

For fiscal 2025, the company projects Dolby Atmos and Dolby Vision to achieve approximately 15% organic growth, while imaging patents are expected to grow around 15%, as the revenues gained from the GE Licensing acquisition are partly offset by tougher comparisons in the imaging patents segment.

The company announced a dividend of 33 cents per share, payable on Dec. 10, to shareholders of record on Dec. 3, 2024.

Segmental Performance

Revenues from Licensing were $282.7 million, up 6.6% year over year. Products and Services’ revenues fell 12.8% year over year to $22.1 million.

Our estimates were pegged at $282.2 million and $23.2 million for the Licensing and Products and Services revenues, respectively.

Broadcast Licensing contributed 34% to total licensing revenues in the quarter under review. Mobile Licensing, Consumer Electronics, PC Licensing and Licensing from Other Markets accounted for 17%, 15%, 12%, and 22% of licensing revenues, respectively.

For fiscal 2025, management expects Consumer Electronics to be down mid-single digits while the GE Licensing acquisition is likely to drive growth in Mobile in the mid-teens range.

Other Details

Gross profit in the fiscal fourth quarter was $270.8 million compared with $255 million in the year-ago quarter. Total operating expenses decreased to $224.5 million from $258.5 million reported in the year-ago quarter.

Operating income was $46.4 million against an operating loss of $3.5 million in the year-ago quarter.

Cash Flow and Liquidity

For the fiscal year that ended on Sept. 27, Dolby generated $327.3 million of net cash from operating activities compared with $367 million a year ago.

As of Sept. 27, 2024, the company had $482 million in cash and cash equivalents, with $623 million in total liabilities. It had $741.6 million in cash and cash equivalents, with $526.2 million in total liabilities, as of June 30, 2024.

In the fiscal fourth quarter, the company repurchased 251,000 shares of its common shares and ended the quarter with $402 million of stock repurchase authorization.

2025 Outlook

For the first quarter of fiscal 2025, the company estimates revenues between $330 million and $360 million. It expects GAAP EPS of 53-68 cents and non-GAAP EPS between 96 cents and $1.11.

On a GAAP basis, operating expenses are expected to be in the range of $230-$240 million, whereas, on a non-GAAP basis, operating expenses are anticipated to be between $190 million and $200 million.

For fiscal 2025, the company expects revenues to be in the $1.33-$1.39 billion band. GAAP operating margin is expected to be 20%, while the non-GAAP operating margin is expected to be nearly 33%.

On a GAAP basis, operating expenses are expected to be between $908 million and $918 million, whereas, on a non-GAAP basis, operating expenses are anticipated to be in the range of $765-$775 million. The company expects GAAP EPS of $2.43-$2.58 and non-GAAP EPS of $3.99-$4.14.

DLB’s Zacks Rank

Dolby currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Performance of Other Companies

Intrusion Inc. INTZ incurred a third-quarter 2024 loss of 35 cents per share compared with a loss of $2.78 a year ago. The bottom line was narrower than the Zacks Consensus Estimate of a loss of 42 cents.

Shares of INTZ have lost 93% in the past year.

BCE Inc. BCE reported third-quarter 2024 adjusted EPS of C$0.75 (55 cents) compared with C$0.81 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 57 cents.

Shares of BCE have lost 26.4% in the past year.

Itron Inc ITRI reported non-GAAP EPS of $1.84 for third-quarter 2024, which beat the Zacks Consensus Estimate by 62.8%. The company reported earnings of 98 cents in the prior-year quarter.

Shares of ITRI have surged 94.8% in the past year.

Zacks Investment Research

Wix.com Ltd WIX reported non-GAAP earnings per share (EPS) of $1.50 for third-quarter 2024, exceeding the Zacks Consensus Estimate of $1.44. The company had reported EPS of $1.10 in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Total revenues increased 13% year over year to $444.7 million and beat the Zacks Consensus Estimate of $443.6 million.

At the end of Sept. 30, 2024, registered users were 278 million.

In response to the results, WIX’s shares went up 14.4% in pre-market trading on Nov. 20. WIX's shares have gained 87.2% compared with the industry’s growth of 21.3% in the past year.

Quarter in Detail

Creative Subscriptions’ revenues (71.7% of total revenues) increased 10% year over year to $318.8 million. Business Solutions’ revenues (28.3% of total revenues) rose 22% to $125.8 million.

In the third quarter, Creative Subscriptions annualized recurring revenues were $1.31 billion, up 11% year over year.

Wix.com Ltd. Price, Consensus and EPS Surprise

Wix.com Ltd. price-consensus-eps-surprise-chart | Wix.com Ltd. Quote

Bookings of $449.8 million improved 16% year over year. Creative Subscriptions’ bookings increased 15% year over year to $326.6 million. Business Solutions’ bookings rose 17% to $123.1 million. Solid uptake of WIX Studio, artificial intelligence (AI) product suite, healthy business pipeline and expanding commerce platform drove the strong bookings performance in the quarter under discussion.

Bookings growth for Studio subscriptions increased significantly compared to the previous quarter. This was driven by strong new purchases and many existing customers renewing their subscriptions. In the third quarter, 75% of bookings from new customers came from Studio accounts, as more agencies adopted Studio for their projects.

Partners revenues in the third quarter were $155.2 million, up 30% year over year.

Region-wise, North America, Europe, Asia and others, and Latin America contributed 60%, 25%, 11% and 4%, respectively, to third-quarter 2024 revenues, up 12%, 17%,11% and 5% year over year.

Operating Details

Non-GAAP gross margin was 69%, up from 68% in the prior-year quarter, driven by improving gross margins across Creative Subscriptions and Business Solutions segments.

Wix reported a non-GAAP operating income of $88.4 million compared with $58 million in the year-ago quarter.

Balance Sheet & Cash Flow

As of Sept. 30, 2024, Wix had cash and cash equivalents of $439.4 million compared with $802.4 million as of June 30, 2024.

Cash flow from operations amounted to $129.8 million compared with $64.1 million in the year-ago quarter.

Capital expenditures totaled $2.1 million. Free cash flow was $127.8 million.

2024 Outlook Revised

Based on its strong performance in the third quarter, Wix has raised its projections for the full year. For 2024, bookings are expected to reach $1,822–$1,832 million up from the previous guidance of $1,802–$1,822 million.

Revenues are expected to be between $1,757 million and $1,764 million, suggesting 13% growth from the prior-year quarter's reported figure. Earlier, it projected revenues in the $1,747-$1,761 million band.

Free Cash Flow (excluding HQ capital expenditure) is projected in the range of $483–$488 million (27–28% of revenue), reflecting an increase from earlier guidance of $460–$470 million.

For the fourth quarter of 2024, revenue is expected to be between $457 million and $464 million, or 13-15% year-over-year growth, and the company anticipates exiting the year with bookings growth of 18%.

WIX’s Zacks Rank

Currently, Wix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

BCE Inc. BCE reported third-quarter 2024 adjusted EPS of C$0.75 (55 cents) compared with C$0.81 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 57 cents.

Shares of BCE have lost 26.4% in the past year.

Itron Inc ITRI reported non-GAAP EPS of $1.84 for third-quarter 2024, which beat the Zacks Consensus Estimate by 62.8%. The company reported earnings of 98 cents in the prior-year quarter.

Shares of ITRI have surged 94.8% in the past year.

Watts Water Technologies, Inc. WTS reported third-quarter 2024 adjusted EPS of $2.03 compared with $2.04 in the prior-year quarter. The bottom line topped the Zacks Consensus Estimate by 2%.

Shares of WTS have gained 10.4% in the past year.

Zacks Investment Research

Even as President-elect Donald Trump has railed against renewable energy, his stance has been less antagonistic towards nuclear - as highlighted by his selection of Oklo board member Chris Wright for his incoming administration's energy secretary. Moreover, Trump's previous administration supported advancements in nuclear energy technology, implying that maybe more of the same is in the cards for his second rodeo at the White House.

Nuclear energy's prospects certainly look upbeat in the long term, with the government aiming to triple capacity by 2050. With long-term policy support expected, investors have been turning to the previously sleepy utility sector to tap into the next phase of the energy transition. Here's a closer look at one newly dividend-paying utility name with nuclear energy upside that's also making use of artificial intelligence (AI) to optimize its operations.

About Pacific Gas & Electric Company

Based out of San Francisco, Pacific Gas & Electric Company primarily operates as a regulated utility providing natural gas (NGZ24) and electric service to approximately 16 million customers across a 70,000-square-mile area in Northern and Central California. Its operations are categorized into two main areas: Electricity Distribution and Transmission; and Natural Gas Distribution and Transmission. The company's market cap currently stands at $55.02 billion.

PCG stock has gained 16.7% on a YTD basis.

After suspending its dividends in 2017 due to liabilities stemming from California wildfires, the company reinstated its quarterly payout relatively recently, about a year ago.

While CEO Patti Poppe said at the time that "having a normal utility profile will take some time on the dividend front," she added, "We expect to recommend growing the dividend at least as fast as our industry-leading earnings per share growth and potentially quite a bit faster given our low starting point."

So, although the company now offers a modest quarterly payout of just $0.01 per share, for a dividend yield of 0.19%, investors in search of a dividend grower may find PCG to be a solid pick.

Solid Q3 Earnings

In the most recent quarter, PCG reported growth in both revenue and earnings, although its top-line results fell short of consensus estimates. Operating revenues for the quarter came in at $5.94 billion against a $6.67 billion estimate, up from $5.8 billion in the year-ago period. Adjusted EPS rose 54.2% to $0.37, outpacing the consensus estimate of $0.32. Further, this marked the fourth consecutive quarter that PCG beat analysts' earnings estimates.

For the nine months ended Sept. 30, the company's net cash from operating activities came in at $6.3 billion, up from $4.5 billion in the year-ago period.

PCG said it's adding $1 billion to its 2024-2028 capex plan in response to growing customer demand, which the California Public Utilities Commission has already approved, allowing the company to raise billing rates and implement new net billing tariffs. These initiatives are expected to drive long-term revenue growth. Financing for the increased amount is already in place, and PCG backed its guidance for no equity needs this year, and $3 billion from 2025-2028.

Over the past 10 years, the company's revenues have clocked a CAGR of 4.01%, while earnings have compounded at a rate of 7.04% over the same period. Notably, analysts are also predicting that PCG will generate industry-beating revenue and earnings, with forward revenue and earnings growth pegged at 5.74% and 19.30%, compared to the sector medians of 2.22% and 6.50%, respectively.

What's Next for PCG?

PCG provides electricity and natural gas to more than 16 million people, dominating Northern and Central California’s utility market across a 70,000 square-mile service area. Following costly disasters in the last decade, the company is actively working toward its ambitious "10,000-mile underground program" aimed at protecting its distribution lines from wildfires and minimizing risk.

During the first nine months of 2024, PG&E constructed 58 miles of underground powerlines and 66 miles of covered powerlines with reinforced poles in high fire-risk areas, totaling 120 and 113 miles, respectively. Additionally, the utility installed 14 new AI-enabled high-definition cameras for wildfire detection, bringing the total to over 630 across its system.

PG&E is also well-positioned to benefit from the growing demand for electric vehicles (EVs) in California. The state has over 1.1 million electric vehicles, the highest per capita ownership in the U.S., and more than 15,000 charging stations, which account for about 29% of all U.S. charging stations. To that end, the utility is joining forces with infrastructure services company Itron to make EV charging more accessible and affordable for PG&E's customers. The company installed more than 320 EV charging ports YTD, reaching a cumulative total of approximately 1,040 new ports added.

Additionally, CEO Poppe noted that the company’s grid is currently underutilized, at just 45% capacity. With modern computing advancements, the grid's utilization is expected to ramp up to 80% by 2040, coinciding with projected demand for power doubling over that period.

Moreover, recently, PCG launched the first commercial deployment of an on-site generative AI solution for the nuclear energy sector at Diablo Canyon.

Analysts Say PCG is a “Strong Buy”

Analysts are quite bullish about PCG stock, and have a consensus rating of “Strong Buy” with a mean target price of $23.40. This indicates an upside potential of about 11.2% from current levels.

Out of 16 analysts covering the stock, 12 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 3 have a “Hold” rating.

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On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Radcom RDCM reported third-quarter 2024 non-GAAP earnings per share (EPS) of 23 cents, surpassing the Zacks Consensus Estimate by 21%. The bottom line expanded 53.3% year over year.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Revenues in the quarter were a record $15.8 million, beating the Zacks Consensus Estimate by 5.5%. Total revenues jumped 20% year over year. With a focus on providing advanced 5G assurance solutions and incorporating cutting-edge artificial intelligence technologies, RADCOM has positioned itself to capitalize on the emerging demands of the 5G market and enhance customer experience.

Radcom Ltd. Price, Consensus and EPS Surprise

Radcom Ltd. price-consensus-eps-surprise-chart | Radcom Ltd. Quote

RDCM’s buyout of Continual in May 2023 has strengthened its service assurance portfolio and resulted in a seven-figure, multi-year deal with a North American operator for RADCOM’s enhanced mobility experience analytics solution during the third quarter.

In response to the robust financial performance, RDCM’s shares gained 11.6% and closed the trading session at $11.99 on Nov. 13. Shares of the company have gained 49.6% in the past year versus the sub-industry’s growth of 9.8%.

Other Details

Non-GAAP net income for the quarter was $3.7 million compared with $2.4 million a year ago.

Non-GAAP operating income was $2.6 million, up 92% year over year. Operating margin improved 7% year over year to 17%. Increased revenues and prudent expense management resulted in the uptick.

Non-GAAP operating expenses for the period were $9.3 million, up from $8.6 million in the prior-year period, due to a substantial investment in sales and marketing and general and administrative expenses to capture emerging opportunities in the 5G market.

Cash Flow and Liquidity

As of Sept. 30, 2024, RDCM had $90.2 million in cash, cash equivalents and short-term bank deposits. The company exited the third quarter with a cash flow of $4 million. This represents RDCM’s highest-ever cash balance, showcasing a solid liquidity position that enables it to reinvest in technology, acquisitions and strategic growth.

Increased Revenue Guidance for 2024

Driven by healthy momentum, RDCM has raised its revenue guidance for full-year 2024 to $59-$62 million. This is an increase from the previous guidance of $58-$61 million, and it reflects the company’s confidence in its ability to achieve a fifth consecutive year of revenue growth and increased profitability.

RDCM’s Zacks Rank

RDCM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in the Broader Tech Space

Intrusion Inc. INTZ incurred a third-quarter 2024 loss of 35 cents per share compared with a loss of $2.78 a year ago. The bottom line was narrower than the Zacks Consensus Estimate of a loss of 42 cents.

Shares of INTZ lost 91.5% in the past year.

BCE Inc. BCE reported third-quarter 2024 adjusted EPS of C$0.75 (55 cents) compared with C$0.81 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 57 cents.

Shares of BCE lost 31.1% in the past year.

Itron Inc ITRI reported non-GAAP EPS of $1.84 for third-quarter 2024, which beat the Zacks Consensus Estimate by 62.8%. The company reported earnings of 98 cents in the prior-year quarter.

Shares of ITRI surged 80.3% in the past year.

Zacks Investment Research