Shares of BRP Inc. (DOOO) have been strong performers lately, with the stock up 4.9% over the past month. The stock hit a new 52-week high of $68.45 in the previous session. BRP has gained 31.9% since the start of the year compared to the 7.1% move for the Zacks Auto-Tires-Trucks sector and the 3.2% 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 $3.28 per share on $5.91 in revenues. This represents a 0.92% change in EPS on a 2.87% change in revenues. For the next fiscal year, the company is expected to earn $4.07 per share on $6.27 in revenues. This represents a year-over-year change of 24.01% and 5.99%, respectively.
Valuation Metrics
While BRP 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). 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.
BRP has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.3X. On a trailing cash flow basis, the stock currently trades at 8.9X versus its peer group's average of 8X. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. 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 fits the bill. 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 Aptiv PLC (APTV). APTV has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Aptiv PLC beat our consensus estimate by 18.44%, and for the current fiscal year, APTV is expected to post earnings of $7.53 per share on revenue of $20.16 billion.
Shares of Aptiv PLC have gained 0.9% over the past month, and currently trade at a forward P/E of 11.1X and a P/CF of 7.61X.
The Automotive - Original Equipment industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DOOO and APTV, even beyond their own solid fundamental situation.
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BRP Inc. (DOOO): Free Stock Analysis Report Aptiv PLC (APTV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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