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Here's Why Byrna Technologies Stock is a Portfolio Must

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Byrna Technologies Inc. (BYRN - Free Report) has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, you should add the stock to your portfolio if you have not yet taken advantage of the share price appreciation.

What Makes BYRN Stock an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the year. Shares of BYRN have surged 351% compared with the wider consulting services industry and the Zacks S&P 500 composite’s growth of 59% and 29%, respectively.

Solid Rank: BYRNcarries a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition.

Northward Estimate Revisions: One earnings estimate for 2024 moved north in the past 60 days versus no southward revision. The Zacks Consensus Estimate for 2024 earnings has increased 11.8% at the same time. Two earnings estimates for 2025 moved north in the past 60 days versus no southward revision. The Zacks Consensus Estimate for 2025 earnings has increased by 15% at the same time.

Positive Earnings Surprise History: BYRN has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 532.5%.

Strong Growth Prospects: The Zacks Consensus Estimate for BYRN’s 2024 earnings is pegged at $19 cents, indicating 205.6% year-over-year growth. The consensus estimate for 2025 earnings is pegged at 23 cents, implying 23.7% growth year over year.

Growth Factors: Byrna has achieved high brand visibility through a successful celebrity endorsement program and extensive media coverage. In the third quarter of fiscal 2024, the company realized an impressive 5X return on ad spend through celebrity endorsements, even as advertising expenses rose from $0.8 million monthly in the second quarter to $1.0 million.

Increased media exposure has helped normalize less-lethal solutions, significantly boosting demand from both consumers and law enforcement. This drove a notable 194% year-over-year sales growth for the quarter, while net income improved from a loss of $4.1 million in the previous year to a profit of $1.0 million, an impressive $5.1 million increase.

Looking ahead, Byrna is well-positioned for growth with several strategic initiatives. The company is ramping up production to meet increasing demand and is preparing to launch its new Compact Launcher in mid-2025. Additionally, Byrna is expanding its retail presence with more company-owned stores and strengthening its footprint in Latin America through partnerships with law enforcement.

BYRN recently extended its reach into Mexico by collaborating with Mexico’s Secretaría de Trabajo y Previsión Social to establish a federally certified training program allowing civilians to legally carry Byrna devices. Furthermore, the company is enhancing its supply chain by shifting ammunition production domestically, which is expected to improve product margins. These initiatives, alongside continued marketing investment, are anticipated to drive growth through 2025 and beyond, positioning Byrna for sustained success.

Other Business Services Stocks to Consider

A couple of other top-ranked stocks in the broader Zacks Business Services sector are Climb Global Solutions, Inc. (CLMB - Free Report) and Qifu Technology, Inc. (QFIN - Free Report) .

Climb Global Solutions flaunts a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 16%. CLMB delivered a trailing four-quarter earnings surprise of 51.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Qifu Technology sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 20.9%. QFIN delivered a trailing four-quarter earnings surprise of 12.4%, on average.


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Qifu Technology, Inc. (QFIN) - free report >>

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