On Thursday, Helen of Troy Ltd (NASDAQ:HELE) shares surged nearly 7% after announcing its most recent quarterly results. The company reported its fiscal Q2 revenue and earnings before markets opened, beating analyst expectations.
HELE posted fiscal Q2 non-GAAP earnings per share of $2.65, beating the consensus Street estimate of $2.24. In addition, its GAAP EPS of $2.11 outperformed the average for analyst expectations by $0.35 per share, while the revenue of $475.22 million was ahead of estimates by $47.06 million, despite registering a Y/Y decline of 10.5%.
Helen of Troy continues to trade in a choppy pattern formation, swinging to a net year-to-date gain of just 5.83%. Therefore, HELE seems to have more room to run before retesting this year’s highs of about $260 per share achieved on 27th January.
Is it time to buy HELE stock?
From an investment perspective, the Helen of Troy stock trades at a trailing 12-month P/E of 23.35 and a forward P/E of about 17.88. Therefore, value investors could find it as a good option for their portfolios.
Moreover, analysts expect the company’s earnings per share to grow by nearly 60% this year, before rising by a further 12.24% next year. As a result, growth investors could also find the stock exciting.
Therefore, with the stock up just 5.83% this year, thereby underperforming the S&P 500 index, which is up nearly 19%, it could be time to buy HELE shares.
Source – TradingView
The rebound looks far from over
Technically, HELE shares appear to have recently bounced off a key support level at about $216, before surging to trade above the 100-day moving average.
However, the stock is yet to hit overbought conditions, thus leaving room for more upward movement. Therefore, investors could target extended gains at $239.34, or higher at $249.01. On the other hand, $227.01 and $216.13 are crucial support zones.
Helen of Troy looks like a buy
In summary, although HELE shares surged nearly 7% on Thursday, the stock is far from reaching overbought conditions, thereby leaving room for more gains.
Moreover, HELE offers exciting short-term growth prospects at reasonable valuation multiples. It could be time to buy the stock.
The post Helen of Troy stock price predictions as FQ2 results beat Street estimates appeared first on Invezz.
