Standard Motor Products, Inc. (SMP) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Standard Motor Products (SMP) has shown strong stock performance, with an 8.7% increase over the past month and an 18.1% gain since the start of the year, outperforming the Zacks Auto-Tires-Trucks sector and the Zacks Automotive - Replacement Parts industry [1][2]. Financial Performance - SMP has a consistent record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters. In the latest earnings report on August 5, 2025, the company reported an EPS of $1.29, surpassing the consensus estimate of $0.97, and beat the revenue estimate by 9.75% [2]. - For the current fiscal year, SMP is projected to achieve earnings of $3.67 per share on revenues of $1.72 billion, reflecting a 15.77% increase in EPS and a 17.27% increase in revenues. For the next fiscal year, earnings are expected to rise to $4.23 per share on $1.77 billion in revenues, indicating a year-over-year change of 15.44% in EPS and 2.97% in revenues [3]. Valuation Metrics - SMP currently trades at 10X the current fiscal year EPS estimates, which is below the peer industry average of 13.6X. On a trailing cash flow basis, the stock trades at 7.7X, aligning with the peer group's average, positioning SMP favorably for value investors [7]. - The company has a Value Score of A, while its Growth and Momentum Scores are D and C, respectively, resulting in a combined VGM Score of B [6]. Zacks Rank - SMP holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates. This ranking suggests that the stock is a suitable choice for investors looking for stocks with strong potential for gains [8].