Have you been paying attention to shares of Envela Corporation (ELA)? Shares have been on the move with the stock up 38.9% over the past month. The stock hit a new 52-week high of $15.06 in the previous session. Envela has gained 102.9% since the start of the year compared to the 6.5% move for the Zacks Retail-Wholesale sector and the -0.2% return for the Zacks Retail - Jewelry 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 November 5, 2025, Envela reported EPS of $0.13 versus consensus estimate of $0.06.
For the current fiscal year, Envela is expected to post earnings of $0.42 per share on $215.92 in revenues. This represents a 61.54% change in EPS on a 19.67% change in revenues. For the next fiscal year, the company is expected to earn $0.45 per share on $233.19 in revenues. This represents a year-over-year change of 7.14% and 8%, respectively.
Valuation Metrics
While Envela 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 is due for a pullback from this level.
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.
Envela has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 34.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 29.4X. On a trailing cash flow basis, the stock currently trades at 45.6X versus its peer group's average of 18.7X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Envela currently has a Zacks Rank of #2 (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 Envela passes the test. Thus, it seems as though Envela shares could have potential in the weeks and months to come.
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Envela Corporation (ELA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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