Envela Corporation (ELA) Hit a 52 Week High, Can the Run Continue?

Core Insights - Envela Corporation (ELA) has seen a significant stock price increase of 44.3% over the past month, reaching a new 52-week high of $11.29, and has gained 56.6% year-to-date, outperforming the Zacks Retail-Wholesale sector and the Zacks Retail - Jewelry industry [1][2]. Financial Performance - Envela has consistently exceeded earnings expectations, reporting an EPS of $0.13 against a consensus estimate of $0.06 in its latest earnings report on November 5, 2025 [2]. - For the current fiscal year, Envela is projected to achieve earnings of $0.42 per share on revenues of $210.21 million, reflecting a 61.54% increase in EPS and a 16.51% increase in revenues. For the next fiscal year, earnings are expected to rise to $0.45 per share on revenues of $227.02 million, indicating year-over-year growth of 7.14% and 8%, respectively [3]. Valuation Metrics - Envela's current valuation metrics show a Value Score of C, with Growth and Momentum Scores of A and B, respectively, resulting in a VGM Score of A. The stock trades at 26.8X current fiscal year EPS estimates, aligning with the peer industry average, but on a trailing cash flow basis, it trades at 35.2X compared to the peer group's average of 20.3X, suggesting it may not be in the top tier from a value perspective [6]. Zacks Rank - Envela holds a Zacks Rank of 2 (Buy), driven by rising earnings estimates. This ranking, combined with its Style Scores, indicates that Envela shares may still have potential for further gains [7].