The Honest Company, Inc. (HNST) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Honest (HNST)? Shares have been on the move with the stock up 72% over the past month. The stock hit a new 52-week high of $6.77 in the previous session. Honest has gained 97% since the start of the year compared to the 11.5% move for the Zacks Consumer Discretionary sector and the 12% return for the Zacks Consumer Products - Discretionary 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 November 12, 2024, Honest reported EPS of $0 versus consensus estimate of $-0.03.For the current fiscal year, Honest is expected to post earnings of -$0.07 per share on $372.49 million in revenues. This represents an 82.93% change in EPS on an 8.17% change in revenues. For the next fiscal year, the company is expected to earn $0.02 per share on $392.47 million in revenues. This represents a year-over-year change of 135.71% and 5.36%, respectively.Valuation MetricsHonest 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 has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Honest has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Honest 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 Honest passes the test. Thus, it seems as though Honest shares could have a bit more room to run in the near term.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.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 The Honest Company, Inc. (HNST): 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