Dorman Products, Inc. (DORM) Hit a 52 Week High, Can the Run Continue?

Company Performance - Dorman Products (DORM) has seen a significant increase in its stock price, rising 16.4% over the past month and reaching a new 52-week high of $166.89 [1] - Year-to-date, Dorman Products has gained 28.4%, outperforming the Zacks Auto-Tires-Trucks sector, which declined by 5.9%, and the Zacks Automotive - Replacement Parts industry, which fell by 2% [1] Earnings and Revenue - Dorman Products has consistently exceeded earnings expectations, beating the Zacks Consensus Estimate in the last four quarters [2] - In the latest earnings report on August 4, 2025, Dorman reported an EPS of $2.06, surpassing the consensus estimate of $1.76, and beat the revenue estimate by 4.53% [2] Future Projections - For the current fiscal year, Dorman Products is projected to achieve earnings of $8.75 per share on revenues of $2.17 billion, reflecting a 22.72% increase in EPS and a 7.88% increase in revenues [3] - The next fiscal year forecasts earnings of $9.6 per share on revenues of $2.26 billion, indicating a year-over-year change of 9.66% in EPS and 4.34% in revenues [3] Valuation Metrics - Dorman Products has a Value Score of B, with Growth and Momentum Scores of C and B, respectively, resulting in a combined VGM Score of B [6] - The stock trades at 19 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 13 times [6] - On a trailing cash flow basis, Dorman trades at 18.3 times, while the peer group's average is 8.6 times [6] Zacks Rank - Dorman Products holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7] - 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 potential for Dorman Products in the near future [8] Industry Comparison - Dorman Products is performing well compared to its industry peers, such as Standard Motor Products, Inc. (SMP), which also has a Zacks Rank of 2 (Buy) [9] - SMP is expected to post earnings of $3.70 per share on revenue of $1.75 billion for the current fiscal year, having beaten consensus estimates by 32.99% last quarter [10] - Despite the Automotive - Replacement Parts industry ranking in the bottom 76% of all industries, both Dorman and SMP are positioned to benefit from favorable market conditions [11]