Shares of Helios Technologies (HLIO) have been strong performers lately, with the stock up 8.4% over the past month. The stock hit a new 52-week high of $57.61 in the previous session. Helios Technologies has gained 27.9% since the start of the year compared to the 6.1% move for the Zacks Industrial Products sector and the 7.7% return for the Zacks Manufacturing - General Industrial 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 4, 2025, Helios Technologies reported EPS of $0.59 versus consensus estimate of $0.49 while it beat the consensus revenue estimate by 6.09%.
For the current fiscal year, Helios Technologies is expected to post earnings of $2.41 per share on $822.3 in revenues. This represents a 14.76% change in EPS on a 2.03% change in revenues. For the next fiscal year, the company is expected to earn $2.57 per share on $817.4 in revenues. This represents a year-over-year change of 6.64% and -0.6%, respectively.
Valuation Metrics
While Helios Technologies has moved to its 52-week high in the recent past, 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 is due for a pullback from this level.
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.
Helios Technologies has a Value Score of C. 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 23.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.8X. On a trailing cash flow basis, the stock currently trades at 14.1X versus its peer group's average of 17.2X. 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, Helios Technologies currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 Helios Technologies fits the bill. Thus, it seems as though Helios Technologies shares could have potential in the weeks and months to come.
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Helios Technologies, Inc (HLIO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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