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Standard Motor Products (SMP) is a Top-Ranked Growth Stock: Should You Buy?
ZACKS· 2025-08-12 14:46
Company Overview - Standard Motor Products Inc. is a leading manufacturer, distributor, and marketer of premium automotive replacement parts for engine management and temperature control systems, founded in 1919 [11] - The company started reporting results in four segments: Vehicle Control, Temperature Control, Engineered Solutions, and Nissens Automotive from February 2025 [11] Investment Ratings - Standard Motor Products holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong potential for investors [12] - The company is considered a top pick for growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 15.8% for the current fiscal year [12] Earnings Estimates - In the last 60 days, one analyst revised their earnings estimate upwards, with the Zacks Consensus Estimate increasing by $0.09 to $3.67 per share [12] - Standard Motor Products boasts an average earnings surprise of +40.4%, highlighting its strong performance relative to expectations [12] Investment Considerations - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Standard Motor Products is recommended for investors' consideration [13]
Here's Why Standard Motor Products (SMP) is a Strong Growth Stock
ZACKS· 2025-05-01 14:46
Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1] Summary by Categories Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price or earnings trends, utilizing factors like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who prefer a multifaceted approach to stock selection [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings outlook changes [9][10] Company Spotlight: Standard Motor Products (SMP) - Standard Motor Products Inc., established in 1919, is a leading manufacturer and distributor of automotive replacement parts, reporting results in four segments since February 2025 [11] - SMP holds a Zacks Rank of 2 (Buy) with a VGM Score of A, and a Growth Style Score of B, indicating a forecasted year-over-year earnings growth of 10.7% for the current fiscal year [12] - The Zacks Consensus Estimate for SMP's earnings has increased by $0.05 to $3.51 per share, with an average earnings surprise of 38.6%, making it a strong candidate for growth investors [12][13]