STRATTEC-Strattec Security Corporation (STRT) Hits Fresh High: Is There Still Room to Run?

Company Performance - Strattec Security's shares have increased by 15% over the past month and reached a new 52-week high of $43.27, with a year-to-date gain of 68% compared to the Zacks AutoTires-Trucks sector's 11.6% and the Zacks Automotive - Original Equipment industry's -19.7% return [1] - The company has consistently exceeded earnings expectations, reporting an EPS of$ 0.92 against a consensus estimate of $0.56 in its last earnings report on November 4, 2024 [2] Earnings Forecast - For the current fiscal year, Strattec Security is projected to achieve earnings of$ 2.76 per share on revenues of $537.6 million, reflecting a -32.19% change in EPS and a -0.03% change in revenues [3] - The next fiscal year is expected to see earnings of$ 2.78 per share on revenues of $560.2 million, indicating a year-over-year change of 0.72% in EPS and 4.2% in revenues [3] Valuation Metrics - Strattec Security has a Value Score of A, with Growth and Momentum Scores of B, resulting in a combined VGM Score of A [6] - The stock trades at 15.4X current fiscal year EPS estimates, which is above the peer industry average of 14.2X, and has a trailing cash flow multiple of 5.3X compared to the peer group's average of 5.5X [7] - The PEG ratio stands at 1.54, indicating that while the stock is performing well, it may not be in the top tier from a value perspective [7] Zacks Rank - Strattec Security holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [8] - The recommendation is for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which applies to Strattec Security, suggesting potential for future growth [9] Industry Comparison - In comparison to industry peers, XPEL, Inc. has a Zacks Rank of 2 (Buy) and shows a solid performance, with expected earnings of$ 2.04 per share on revenues of $418.08 million for the current fiscal year [10][11] - XPEL, Inc. shares have gained 17.5% over the past month, trading at a forward P/E of 26.66X and a P/CF of 19.82X, indicating a competitive position within the Automotive - Original Equipment industry [12]