Have you been paying attention to shares of MKS (MKSI)? Shares have been on the move with the stock up 36.5% over the past month. The stock hit a new 52-week high of $233.11 in the previous session. MKS has gained 39.6% since the start of the year compared to the 27.1% gain for the Zacks Computer and Technology sector and the 45.5% return for the Zacks Electronics - Miscellaneous Products 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 November 5, 2025, MKS reported EPS of $1.93 versus consensus estimate of $1.8.
For the current fiscal year, MKS is expected to post earnings of $8.54 per share on $3.89 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $9.89 per share on $4.16 in revenues. This represents a year-over-year change of 10.57% and 6.89%, respectively.
Valuation Metrics
Though MKS has recently hit a 52-week high, what is next for MKS? 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
MKS has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 26.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.6X. On a trailing cash flow basis, the stock currently trades at 18.3X versus its peer group's average of 18.4X. Additionally, the stock has a PEG ratio of 2.05. 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, MKS 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 MKS fits the bill. Thus, it seems as though MKS shares could still be poised for more gains ahead.
How Does MKSI Stack Up to the Competition?
Shares of MKSI 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 Daktronics, Inc. (DAKT). DAKT has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Daktronics, Inc. beat our consensus estimate by 29.63%, and for the current fiscal year, DAKT is expected to post earnings of $1.14 per share on revenue of $839.23 million.
Shares of Daktronics, Inc. have gained 18.6% over the past month, and currently trade at a forward P/E of 19.27X and a P/CF of 18.38X.
The Electronics - Miscellaneous Products industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MKSI and DAKT, even beyond their own solid fundamental situation.
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MKS Inc. (MKSI): Free Stock Analysis Report Daktronics, Inc. (DAKT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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