VSE (NASDAQ:VSEC) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research upgraded VSE from "hold" to a strong-buy, and the stock carries a consensus "Buy" from analysts with an average price target of $229.29.
• Q4 results beat expectations: VSE reported $1.16 EPS vs. $0.88 expected and revenue rose 32.4% year-over-year to $301.18 million.
• The stock is trading around $176 (below the analysts' average target) with a market cap of $4.94 billion and a high trailing P/E of 197.88, suggesting a premium valuation despite recent earnings strength.

VSE (NASDAQ:VSEC - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

VSEC has been the subject of several other reports. William Blair reiterated an "outperform" rating on shares of VSE in a research report on Thursday, March 12th. Citigroup decreased their price objective on shares of VSE from $261.00 to $230.00 and set a "buy" rating for the company in a research report on Thursday, April 2nd. Royal Bank Of Canada increased their price objective on shares of VSE from $225.00 to $250.00 and gave the stock an "outperform" rating in a research report on Friday, February 27th. Weiss Ratings reiterated a "hold (c)" rating on shares of VSE in a research report on Friday. Finally, Stifel Nicolaus raised their price target on shares of VSE from $250.00 to $260.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $229.29.

VSE Trading Down 2.1%

VSEC opened at $176.11 on Monday. VSE has a twelve month low of $109.67 and a twelve month high of $232.61. The company has a quick ratio of 1.43, a current ratio of 3.76 and a debt-to-equity ratio of 0.20. The company has a fifty day moving average of $201.71 and a 200-day moving average of $190.31. The stock has a market cap of $4.94 billion, a PE ratio of 197.88, a price-to-earnings-growth ratio of 1.65 and a beta of 1.43.

VSE (NASDAQ:VSEC - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The construction company reported $1.16 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.28. VSE had a net margin of 1.84% and a return on equity of 7.60%. The company had revenue of $301.18 million during the quarter, compared to analysts' expectations of $289.55 million. During the same period in the prior year, the company posted $0.63 earnings per share. VSE's revenue for the quarter was up 32.4% compared to the same quarter last year. On average, sell-side analysts predict that VSE will post 4.57 EPS for the current year.

Hedge Funds Weigh In On VSE

Several large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC increased its stake in shares of VSE by 145.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 258 shares of the construction company's stock worth $45,000 after purchasing an additional 153 shares in the last quarter. Farther Finance Advisors LLC increased its stake in shares of VSE by 17.1% in the fourth quarter. Farther Finance Advisors LLC now owns 2,207 shares of the construction company's stock worth $381,000 after purchasing an additional 323 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of VSE by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,485 shares of the construction company's stock worth $1,258,000 after purchasing an additional 470 shares in the last quarter. Handelsbanken Fonder AB grew its stake in VSE by 47.4% during the fourth quarter. Handelsbanken Fonder AB now owns 5,600 shares of the construction company's stock valued at $968,000 after acquiring an additional 1,800 shares in the last quarter. Finally, Ellevest Inc. purchased a new position in VSE during the fourth quarter valued at approximately $323,000. Hedge funds and other institutional investors own 91.54% of the company's stock.

VSE Company Profile

VSE Corporation NASDAQ: VSEC is a provider of aftermarket distribution and supply chain management services serving both government and commercial markets. The company's solutions span a wide range of industries, with particular emphasis on defense, aerospace and transportation. VSE's core mission is to ensure mission readiness by delivering critical parts, maintenance and technical support for equipment throughout its lifecycle.

Through its Distribution Services segment, VSE sources, markets and distributes replacement parts and components for commercial truck, bus, rail and specialty vehicle applications.

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