Korn/Ferry International (KFY) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Korn/Ferry has demonstrated strong financial performance with consistent earnings surprises and positive growth expectations for the upcoming fiscal years [1][5]. Financial Performance - Korn/Ferry reported an EPS of $1.26 in its last earnings report, exceeding the consensus estimate of $1.13, and beat the revenue estimate by 0.77% [1]. - For the current fiscal year, Korn/Ferry is expected to achieve earnings of $4.86 per share on revenues of $2.75 billion, reflecting a 13.55% increase in EPS and a slight decrease of -0.41% in revenues [5]. - The next fiscal year projections indicate earnings of $5.41 per share on $3.02 billion in revenues, representing year-over-year changes of 11.52% and 9.91%, respectively [5]. Stock Performance - Korn/Ferry shares have increased by 12.4% since the beginning of the year, outperforming the Zacks Business Services sector's 5.2% gain and the Zacks Staffing Firms industry's decline of -15.6% [3]. - The stock recently reached a 52-week high of $70.78 [3]. Valuation Metrics - Currently, Korn/Ferry trades at 13.7X current fiscal year EPS estimates, below the peer industry average of 16.8X [9]. - On a trailing cash flow basis, the stock trades at 11.6X compared to its peer group's average of 7X, indicating it is not among the top value stocks [9]. Investment Ratings - Korn/Ferry holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, and it has a Value Score of A, with Growth and Momentum Scores of D and A, respectively, resulting in a VGM Score of A [2][7][11].