Triple-S Management (GTS) Soared To A 52-Week-High, Time To Cash Out?

Have you been paying attention to shares of Triple-S Management (NYSE:GTS) ? Shares have been on the move, with the stock up 14.7% over the past month. GTS hit a new 52-week-high of $41.92 in the previous session. Triple-S Management has gained 67.9% since the start of the year compared to the 2.3% move for the Medical sector and the 13.7% 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 EPS estimate in each of the last four quarters. In its last earnings report on May 8, 2018, Triple-S Management reported EPS of $0.60 vs. the Zacks Consensus of $0.24, while it beat the consensus revenue estimate by 4.93%.

For the current fiscal year, Triple-S Management is expected to post earnings of $1.90 per share on $3.04 billion in revenues. This represents a 0.53% change in EPS on a 4.89% change in revenues. For the next fiscal year, the company is expected to earn $2.20 per share on $3.17 billion in revenues. This represents a year-over-year change of 15.79% and 4.27%, respectively.

Valuation Metrics

Triple-S Management may be at a 52-week-high right now, but what might the future hold for GTS? 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.

Triple-S Management has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM score of A.

In terms of its value breakdown, the stock currently trades at 21.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 14.5X versus its peer group's average of 15.3X. Additionally, the stock has a PEG ratio of 2.2. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

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, Triple-S Management 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 Triple-S Management fits the bill. Thus, it seems as though GTS shares could still be poised for more gains ahead.

How Does Triple-S Management Stack Up to the Competition?

Shares of Triple-S Management have been moving higher, 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 looking good, including WellCare Health Plans (NYSE:WCG) , Anthem (NYSE:ANTM) , and Humana (NYSE:HUM) , 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.

The Zacks Medical-HMOs industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GTS, even beyond its own solid fundamental situation.