ZAGG Stock Does Candle Over Candle Reversal After Beat

Randy Hales, President and Chief Executive Officer, said, “Our business performed extremely well across the board during the third quarter. With two of the strongest brands in the mobile lifestyle category – InvisibleShield and mophie – combined with an enhanced operating structure, we’ve created a powerful platform that is generating record revenue and Adjusted EBITDA…”

ZAGG Inc stock has formed a candle over candle reversal after the company reported earnings and revenue beats. Zagg reported EPS of $0.34 which beat consensus estimates of $0.32. Revenue also beat coming in at $134.40 million versus the $128.23 million estimate.

Randy Hales, President and Chief Executive Officer, said, “Our business performed extremely well across the board during the third quarter. With two of the strongest brands in the mobile lifestyle category – InvisibleShield and mophie – combined with an enhanced operating structure, we’ve created a powerful platform that is generating record revenue and Adjusted EBITDA. In addition to our strong year-to-date results, we believe the Company has a long runway for growth evidenced by our increased guidance for 2017. Our optimism extends from our core product lines to our recently introduced wireless charging pad that supports Apple’s new iPhones. I am confident that the Company is well positioned to capitalize on the many opportunities that lie ahead and will deliver increased value to our shareholders for years to come.”

ZAGG Inc (ZAGG) designs, produces and distributes professional product solutions for mobile devices, including screen protection (glass and film), keyboards for tablet computers and mobile devices, keyboard cases, earbuds, mobile power solutions, cables, and cases under the ZAGG and InvisibleShield brands. You can read more about the company on their website.

ZAGG Inc Stock Chart

The Twiggs Money Flow is negative but appears to be rounding up on the candle over candle reversal. ZAGG is in a long-term continuation pattern. Make sure to review this swing trading lesson on continuation patterns.

ZAGG does not present a good entry opportunity at the moment. Prices have been extended to the upside lately. For a good entry it is better to wait for a consolidation. Put ZAGG on your watch list and stalk for a long entry. Please make sure you review this stock trading lesson on watch lists.

ZAGG Company Review
2.5

Summary

Profitability

ZAGG has a Piotroski-F score of 5. This indicates an average health and profitability for ZAGG. The profitability ratios for ZAGG are negative, so there is not much use analyzing them. ZAGG's Return On Assets of -4.97% is worse than the rest of the industry. The industry average Return On Assets is 1.29%. 86% of the industry peers have a better Return On Assets. ZAGG's Profit Margin of -3.12% is worse than the rest of the industry. The industry average Profit Margin is 2.46%. 86% of the industry peers have a better Profit Margin.

Valuation

ZAGG's low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company. The Forward Price/Earnings Ratio of 16.19 indicates a correct valuation of ZAGG. With a price book ratio of 4.44, ZAGG is valued correctly. ZAGG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative. When comparing the price book ratio of ZAGG to the average industry price book ratio of 2.05, ZAGG is valued more expensive than its industry peers. 100% of the companies listed in the same industry are valued cheaper. Compared to an average industry Enterprise Value to EBITDA ratio of 12.74, ZAGG is valued more expensive than its industry peers. 100% of the companies listed in the same industry are valued cheaper.

Growth

ZAGG is expected to show a strong growth in Earnings Per Share. In the coming 2 years, the EPS will grow by 142.83% yearly. When comparing the growth rate of the last 5 years to the growth rate of the upcoming 2 years, we see that the growth is accelerating. ZAGG shows a strong growth in revenue. In the last year, revenue has grown by 45.53%. Measured over the past 5 years, ZAGG shows a quite strong growth in revenue. Revenue has been growing by 11.11% on average per year. The earnings per share for ZAGG have decreased strongly by -437.03% in the last year.

Health

An Altman-Z score of 3.22 indicates that ZAGG is not in any danger for bankruptcy at the moment. ZAGG is in better financial health than average in its industry. Its Altman-Z score is much better than the industry average of 2.73. ZAGG has a Current Ratio of 1.01. This is a normal value and indicates that ZAGG is financially healthy and should not expect problems in meeting its short term obligations. The Debt to Equity ratio of ZAGG is in line with the industry averages. ZAGG has a Piotroski-F score of 5. This indicates an average health and profitability for ZAGG. When comparing the Current Ratio of ZAGG to the average industry Current Ratio of 1.71, ZAGG is less able to pay its short term obligations than its industry peers. ZAGG has a Quick Ratio of 1.01. This is a bad value and indicates that ZAGG is not financially healthy enough and could expect problems in meeting its short term obligations. Compared to an average industry Quick Ratio of 0.60, ZAGG is worse placed to pay its short term obligations than its industry peers.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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