A strong stock as of late has been National Vision (EYE). Shares have been marching higher, with the stock up 14.8% over the past month. The stock hit a new 52-week high of $25.39 in the previous session. National Vision has gained 135.5% since the start of the year compared to the 5.6% gain for the Zacks Consumer Staples sector and the -2.6% return for the Zacks Consumer Products - Staples 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 May 7, 2025, National Vision reported EPS of $0.34 versus consensus estimate of $0.29 while it beat the consensus revenue estimate by 1.85%.
For the current fiscal year, National Vision is expected to post earnings of $0.62 per share on $1.94 in revenues. This represents a 19.23% change in EPS on a 2.88% change in revenues. For the next fiscal year, the company is expected to earn $0.79 per share on $2 in revenues. This represents a year-over-year change of 27.82% and 3.13%, respectively.
Valuation Metrics
Though National Vision has recently hit a 52-week high, what is next for National Vision? 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 these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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.
National Vision has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 39.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.2X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 13.6X. Additionally, the stock has a PEG ratio of 2.05. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, National Vision currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 National Vision passes the test. Thus, it seems as though National Vision shares could have potential in the weeks and months to come.
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National Vision Holdings, Inc. (EYE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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