Telenav (TNAV) Soars To 52-Week High, Time To Cash Out?

Have you been paying attention to shares of Telenav (TNAV)? Shares have been on the move with the stock up 16.9% over the past month. The stock hit a new 52-week high of $6.75 in the previous session. Telenav has gained 63.8% since the start of the year compared to the 17.7% move for the Zacks Computer and Technology sector and the 6.6% return for the Zacks Wireless National industry.

What's Driving the Outperformance?

The stock has a great 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 February 7, 2019, Telenav reported EPS of $-0.06 versus consensus estimate of $-0.12.

For the current fiscal year, Telenav is expected to post earnings of $-0.43 per share on $214.17 million in revenues. This represents a 75.84% change in EPS on a 101.7% change in revenues. For the next fiscal year, the company is expected to earn $-0.28 per share on $236.01 million in revenues. This represents a year-over-year change of 34.88% and 10.2%, respectively.

Valuation Metrics

Telenav 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

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

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, Telenav 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 (Buy) and Style Scores of A or B, it looks as if Telenav passes the test. Thus, it seems as though Telenav shares could have a bit more room to run in the near term.

How Does Telenav Stack Up to the Competition?

Shares of Telenav 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 Gogo (GOGO), CenturyLink (NYSE:CTL), and China Mobile (Hong Kong) (CHL), 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.

However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for Telenav. Still, the fundamentals for Telenav are promising, and it still has potential despite being at a 52-week high.