Markets
MMI

Marcus & Millichap (MMI) Hits Fresh Highs: Is There Still Room to Run?

Have you been paying attention to shares of Marcus & MillichapMMI ? Shares have been on the move with the stock up 4.5% over the past month. MMI hit a new 52-week high of $37.98 in the previous session. Marcus & Millichap has gained 14.2% since the start of the year compared to the -0.8% move for the Finance sector and the -7.4% year-to-date return for its peer group.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 8, 2018, Marcus & Millichap reported EPS of $0.46 versus the Zacks Consensus Estimate of $0.38 while it beat the consensus revenue estimate by 17.62%.

For the current fiscal year, Marcus & Millichap is expected to post earnings of $1.99 per share on $730.6 million in revenues. This represents a 22.84% change in EPS on a 1.51% change in revenues. For the next fiscal year, the company is expected to earn $2.11 per share on $746.9 million in revenues. This represents a year-over-year change of 6.03% and 2.23%, respectively.

Valuation Metrics

Marcus & Millichap may be at a 52-week high right now, but what might the future hold for MMI? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

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

In terms of its value breakdown, the stock currently trades at 18.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 20.7X versus its peer group's average of 14.5X. Additionally, the stock has a PEG ratio of 3.12. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Marcus & Millichap, Inc. Price and Consensus

Marcus & Millichap, Inc. Price and Consensus | Marcus & Millichap, Inc. Quote

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Marcus & Millichap currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Marcus & Millichap passes the test. Thus, it seems as though MMI shares could still be poised for more gains ahead.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Marcus & Millichap, Inc. (MMI): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MMI

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More