AZZ Inc. (AZZ) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of AZZ (AZZ)? Shares have been on the move with the stock up 18.8% over the past month. The stock hit a new 52-week high of $98.13 in the previous session. AZZ has gained 19.1% since the start of the year compared to the 2.1% move for the Zacks Industrial Products sector and the -0.9% return for the Zacks Manufacturing - Electronics industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 7, 2025, AZZ reported EPS of $1.39 versus consensus estimate of $1.29 while it beat the consensus revenue estimate by 0.84%.Valuation MetricsAZZ may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.AZZ has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 18.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.3X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 19.1X. Additionally, the stock has a PEG ratio of 1.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, AZZ currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if AZZ fits the bill. Thus, it seems as though AZZ shares could still be poised for more gains ahead.How Does AZZ Stack Up to the Competition?Shares of AZZ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Enersys (ENS). ENS has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.Earnings were strong last quarter. Enersys beat our consensus estimate by 2.97%, and for the current fiscal year, ENS is expected to post earnings of $10.23 per share on revenue of $3.66 billion.Shares of Enersys have gained 10.3% over the past month, and currently trade at a forward P/E of 10.12X and a P/CF of 9.32X.The Manufacturing - Electronics industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AZZ and ENS, even beyond their own solid fundamental situation.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AZZ Inc. (AZZ): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks