Stantec Inc. (STN) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Stantec's shares have experienced significant growth, rising 16% over the past month and reaching a 52-week high of $101.81, with a year-to-date increase of 29.1% compared to the broader market [1][2]. Financial Performance - Stantec has consistently exceeded earnings expectations, reporting an EPS of $0.81 against a consensus estimate of $0.79 in its last earnings report, with a revenue beat of 4.49% [2]. - For the current fiscal year, Stantec is projected to achieve earnings of $3.86 per share on revenues of $4.77 billion, reflecting a 19.5% increase in EPS and an 11.37% increase in revenues. The following fiscal year is expected to see earnings of $4.31 per share on $5.11 billion in revenues, indicating year-over-year changes of 11.53% and 7.12%, respectively [3]. Valuation Metrics - Stantec's current valuation metrics indicate a premium, trading at 26.2 times the current fiscal year EPS estimates compared to the peer industry average of 21 times. On a trailing cash flow basis, it trades at 19.2 times versus the peer group's average of 18.7 times [6]. Style Scores and Zacks Rank - Stantec has a Value Score of D, while its Growth and Momentum Scores are B and A, respectively, resulting in a combined VGM Score of B. This suggests a mixed valuation perspective [6]. - The stock holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts, indicating potential for further gains [7].