Itron (ITRI): Hot Tech Growth + Value

Itron (ITRI) is riding one of the best growth trends. That being the long term plan to upgrade the power infrastructure in the US. This is not just about meeting higher and higher energy demand in the future...this is a matter of national defense to prevent power outages from any future cyberattack. 

This provides a layer of exciting growth for ITRI on top of the more stable business of monitoring energy usage (aka meters). The best way to show you these positive trends is in the earnings estimates and surprise chart below: 

What this chart tells you is that there is tremendous earnings momentum at play ever since the end of Covid. Not only is year over year growth on the rise (dashed colored lines), but they are riding a series of 9 monster earnings beats that greatly exceeded expectations...pushing future earnings projections higher and yes, ample share price gains to boot. 

The most recent beat was served up on 10/31 where they hit the trifecta. 

• 63% earnings beat
• Topped revenue expectations
• Raised guidance for the future

The sum total of this good news led shares to rally +7.6%. What’s even more impressive is that tech stocks were getting pummeled that day with many top names down 3-5%. So that makes this post earnings gain all the more impressive. 

Since then ITRI has enjoyed a wave of Wall Street analyst love letters with earnings outlook and fair value targets raised across the board.  

Not just any analysts...but some of the industry’s top performing analysts are behind ITRI. Most notable is Ben Kallo of Baird (top 19% of all analysts) who boosted his fair value target to $132. Even better is the street high $136 target for shares that finally broke above heavy resistance at $100. 

(See all ITRI analyst recommendations and price targets on WallStreetZen). 

I just want to be clear. This is not a boring utility play as it may sound like on the surface. This is riding a long term growth trend that is FAR exceeding expectations and is likely to continue on that path providing attractive gains for investors. 

Clearly this passes the test with Earnings Estimate Revisions. And it passes the test with the POWR Ratings with particular strength in operational metrics (aka Quality) as well as consistency of growth and Sentiment (what the smart money is doing).

Shares have attractive upside to their recently updated fair value targets. However, you need to appreciate that this recent 63% beat is not a fluke. In fact, they have averaged a 50% beat the past four quarters. 

This means that they are riding a crest of exceptional earnings momentum that is likely not over. This will lead to more earnings beats…higher estimates…and higher target prices. 

Thus, it is not hard to easily see ITRI 50 to 100% higher by the end of 2025. And much more in the years ahead.  

Time to power up with ITRI shares!

What To Do Next?

Itron (ITRI) is just one of the 13 stellar stocks found in my Zen Investor portfolio.

Each pick goes through our rigorous 4 step screening process to find more 100%+ stock winners. 

And Wednesday morning November 6th I am adding to 2 new buy recommendations. 

To get your hands on the current top 13 recommendations…plus the 2 new picks coming this Wednesday…then all you need to do is click the link below. 

Discover the Zen Investor portfolio > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

Want to get in touch? Email us at news@wallstreetzen.com.