Shares of Vontier Corporation (VNT) have been strong performers lately, with the stock up 11.8% over the past month. The stock hit a new 52-week high of $42.05 in the previous session. Vontier has gained 15.3% since the start of the year compared to the -0.6% gain for the Zacks Business Services sector and the 19.8% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 31, 2025, Vontier reported EPS of $0.79 versus consensus estimate of $0.72.
Valuation Metrics
Vontier 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 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. 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.
Vontier has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 11X versus its peer group's average of 12.9X. Additionally, the stock has a PEG ratio of 1.4. 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 supersedes any trend on the style score front. Fortunately, Vontier 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 Vontier meets the list of requirements. Thus, it seems as though Vontier shares could have potential in the weeks and months to come.
How Does VNT Stack Up to the Competition?
Shares of VNT 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 SPX Technologies, Inc. (SPXC). SPXC has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. SPX Technologies, Inc. beat our consensus estimate by 13.79%, and for the current fiscal year, SPXC is expected to post earnings of $6.53 per share on revenue of $2.24 billion.
Shares of SPX Technologies, Inc. have gained 11.9% over the past month, and currently trade at a forward P/E of 29.3X and a P/CF of 25.02X.
The Technology Services industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VNT and SPXC, even beyond their own solid fundamental situation.
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Vontier Corporation (VNT): Free Stock Analysis Report SPX Technologies, Inc. (SPXC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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