Have you been paying attention to shares of Standard Motor Products (SMP)? Shares have been on the move with the stock up 8.7% over the past month. The stock hit a new 52-week high of $36.8 in the previous session. Standard Motor Products has gained 18.1% since the start of the year compared to the -13.1% move for the Zacks Auto-Tires-Trucks sector and the -10.9% return for the Zacks Automotive - Replacement Parts industry.
What's Driving the Outperformance?
The stock has a great 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 August 5, 2025, Standard Motor Products reported EPS of $1.29 versus consensus estimate of $0.97 while it beat the consensus revenue estimate by 9.75%.
For the current fiscal year, Standard Motor Products is expected to post earnings of $3.67 per share on $1.72 in revenues. This represents a 15.77% change in EPS on a 17.27% change in revenues. For the next fiscal year, the company is expected to earn $4.23 per share on $1.77 in revenues. This represents a year-over-year change of 15.44% and 2.97%, respectively.
Valuation Metrics
Though Standard Motor Products has recently hit a 52-week high, what is next for Standard Motor Products? 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 they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Standard Motor Products has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.6X. On a trailing cash flow basis, the stock currently trades at 7.7X versus its peer group's average of 7.7X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Standard Motor Products an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Standard Motor Products 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 Standard Motor Products fits the bill. Thus, it seems as though Standard Motor Products shares could still be poised for more gains ahead.
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Standard Motor Products, Inc. (SMP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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