Envela Corporation (ELA) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Envela Corporation (ELA) has shown strong stock performance, with a 29.5% increase over the past month and a 62.1% gain since the beginning of the year, outperforming both 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 last 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 $215.92 million, reflecting a 61.54% increase in EPS and a 19.67% increase in revenues [3]. - The next fiscal year forecasts earnings of $0.45 per share on revenues of $233.19 million, indicating year-over-year changes of 7.14% and 8%, respectively [3]. Valuation Metrics - Envela's current valuation metrics show a Value Score of C, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of B [6]. - The stock trades at 27.7X current fiscal year EPS estimates, aligning with the peer industry average, while on a trailing cash flow basis, it trades at 36.4X compared to the peer group's average of 20.7X [6]. Zacks Rank - Envela holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend, indicating potential for further gains [7].