Shares of Microvast Holdings, Inc. (MVST) have been strong performers lately, with the stock up 78.1% over the past month. The stock hit a new 52-week high of $4.91 in the previous session. Microvast has gained 120.3% since the start of the year compared to the 2.1% gain for the Zacks Business Services sector and the 46.5% return for the Zacks Technology Services 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 11, 2025, Microvast reported EPS of $0.05 versus consensus estimate of $0.01.
For the current fiscal year, Microvast is expected to post earnings of $0.19 per share on $462.33 in revenues. This represents a 170.37% change in EPS on a 21.73% change in revenues. For the next fiscal year, the company is expected to earn $0.29 per share on $563.49 in revenues. This represents a year-over-year change of 52.63% and 21.88%, respectively.
Valuation Metrics
While Microvast has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? 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.
Microvast has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24X current fiscal year EPS estimates, which is a premium to the peer industry average of 22.2X. 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, Microvast 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 Microvast fits the bill. Thus, it seems as though Microvast shares could still be poised for more gains ahead.
How Does MVST Stack Up to the Competition?
Shares of MVST 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 Jacobs Solutions Inc. (J). J has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. Jacobs Solutions Inc. beat our consensus estimate by 3.85%, and for the current fiscal year, J is expected to post earnings of $6.97 per share on revenue of $12.01 billion.
Shares of Jacobs Solutions Inc. have gained 6.3% over the past month, and currently trade at a forward P/E of 22.17X and a P/CF of 19.73X.
The Technology Services industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MVST and J, even beyond their own solid fundamental situation.
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Microvast Holdings, Inc. (MVST): Free Stock Analysis Report Jacobs Solutions Inc. (J): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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