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Dorman Products, Inc. (DORM) Soars to 52-Week High, Time to Cash Out?
DormanDorman(US:DORM) ZACKSยท2025-08-13 14:15

Company Performance - Dorman Products (DORM) has seen a significant increase in its stock price, rising 24% over the past month and reaching a new 52-week high of $150.24 [1] - Year-to-date, Dorman Products has gained 15.5%, outperforming the Zacks Auto-Tires-Trucks sector, which declined by 8.5%, and the Zacks Automotive - Replacement Parts industry, which fell by 8.2% [1] Earnings and Revenue - Dorman Products has a strong track record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - In the latest earnings report on August 4, 2025, Dorman Products reported an EPS of $2.06, surpassing the consensus estimate of $1.76, and beat the revenue estimate by 4.53% [2] - For the current fiscal year, Dorman Products is projected to post earnings of $8.15 per share on revenues of $2.13 billion, reflecting a 14.31% increase in EPS and a 5.98% increase in revenues [3] - For the next fiscal year, the expected earnings are $8.79 per share on revenues of $2.23 billion, indicating a year-over-year change of 7.85% in EPS and 4.77% in revenues [3] Valuation Metrics - Dorman Products currently trades at 18.4 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 14 times [7] - On a trailing cash flow basis, the stock trades at 16.5 times, while the peer group's average is 8.5 times [7] - The company has a Value Score of B, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of B [6] Zacks Rank - Dorman Products holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend [8] - The recommendation is for investors to select stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating that Dorman Products is well-positioned for potential gains [8] Industry Comparison - In comparison to industry peers, Douglas Dynamics, Inc. (PLOW) also shows strong performance with a Zacks Rank of 2 (Buy) and a Value Score of A [9] - Douglas Dynamics reported a 35.71% earnings surprise in the last quarter and is expected to post earnings of $2.16 per share on revenues of $644.1 million for the current fiscal year [10] - The Automotive - Replacement Parts industry is performing well, ranking in the top 41% of all industries, suggesting favorable conditions for both Dorman Products and Douglas Dynamics [11]