A strong stock as of late has been BRP Inc. (DOOO). Shares have been marching higher, with the stock up 32.1% over the past month. The stock hit a new 52-week high of $68.42 in the previous session. BRP has gained 34.4% since the start of the year compared to the -5.9% gain for the Zacks Auto-Tires-Trucks sector and the 12.7% 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 August 29, 2025, BRP reported EPS of $0.67 versus consensus estimate of $0.33 while it beat the consensus revenue estimate by 4.46%.
For the current fiscal year, BRP is expected to post earnings of $3.15 per share on $5.91 in revenues. This represents a -3.08% change in EPS on a 2.87% change in revenues. For the next fiscal year, the company is expected to earn $4.02 per share on $6.27 in revenues. This represents a year-over-year change of 27.54% and 5.99%, respectively.
Valuation Metrics
BRP 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). 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.
BRP 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 21.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.5X. On a trailing cash flow basis, the stock currently trades at 9X versus its peer group's average of 8.6X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making BRP an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, BRP currently has a Zacks Rank of #1 (Strong 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 BRP meets the list of requirements. Thus, it seems as though BRP shares could have a bit more room to run in the near term.
How Does DOOO Stack Up to the Competition?
Shares of DOOO 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 Gentex Corporation (GNTX). GNTX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Gentex Corporation beat our consensus estimate by 17.50%, and for the current fiscal year, GNTX is expected to post earnings of $1.77 per share on revenue of $2.52 billion.
Shares of Gentex Corporation have gained 7.5% over the past month, and currently trade at a forward P/E of 16.22X and a P/CF of 13.08X.
The Automotive - Original Equipment industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DOOO and GNTX, even beyond their own solid fundamental situation.
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BRP Inc. (DOOO): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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