Visteon Corporation (VC) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Visteon (VC). Shares have been marching higher, with the stock up 7.7% over the past month. The stock hit a new 52-week high of $119.11 in the previous session. Visteon has gained 34% since the start of the year compared to the -8.5% move for the Zacks Auto-Tires-Trucks sector and the 4.3% return for the Zacks Automotive - Original Equipment 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 24, 2025, Visteon reported EPS of $2.39 versus consensus estimate of $2.04.

For the current fiscal year, Visteon is expected to post earnings of $8.46 per share on $3.76 in revenues. This represents a -22.1% change in EPS on a -2.69% change in revenues. For the next fiscal year, the company is expected to earn $9.15 per share on $3.86 in revenues. This represents a year-over-year change of 8.21% and 2.64%, respectively.

Valuation Metrics

Visteon 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). 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.

Visteon has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 14.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.7X. On a trailing cash flow basis, the stock currently trades at 8.2X versus its peer group's average of 7.7X. Additionally, the stock has a PEG ratio of 4.72. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Visteon 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, Visteon currently has a Zacks Rank of #1 (Strong 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 Visteon fits the bill. Thus, it seems as though Visteon shares could still be poised for more gains ahead.

How Does VC Stack Up to the Competition?

Shares of VC 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 OPENLANE, Inc. (KAR). KAR has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of B.

Earnings were strong last quarter. OPENLANE, Inc. beat our consensus estimate by 37.50%, and for the current fiscal year, KAR is expected to post earnings of $1.08 per share on revenue of $1.82 billion.

Shares of OPENLANE, Inc. have gained 15% over the past month, and currently trade at a forward P/E of 26.52X and a P/CF of 13.48X.

The Automotive - Original Equipment industry may rank in the bottom 60% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for VC and KAR, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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