Valmont Industries, Inc. (VMI) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Valmont Industries has shown significant stock performance, with an 11.2% increase over the past month and a 33.1% rise since the beginning of the year, outperforming both the Zacks Industrial Products sector and the Zacks Steel - Pipe and Tube industry [1] Financial Performance - Valmont has consistently exceeded earnings expectations, reporting an EPS of $4.76 against a consensus estimate of $4.04 in its last earnings report [2] - For the current fiscal year, Valmont is projected to achieve earnings of $16.88 per share on revenues of $4.05 billion, reflecting a 12.68% increase in EPS despite a 2.93% decline in revenues [2] - The next fiscal year forecasts an EPS of $17.74 and revenues of $4.18 billion, indicating year-over-year changes of 5.11% and 3.09%, respectively [2] Valuation Metrics - Valmont's stock trades at 18.4 times the current fiscal year EPS estimates, which is above the peer industry average of 17.8 times [4] - On a trailing cash flow basis, the stock is valued at 15.6 times compared to the peer group's average of 11.5 times, suggesting it is not among the top value stocks [4] Zacks Rank and Style Scores - Valmont holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, indicating strong potential for future performance [5] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B, which aligns with investment strategies favoring stocks with strong growth potential [3][5]