Shares of Strattec Security (STRT) have been strong performers lately, with the stock up 16% over the past month. The stock hit a new 52-week high of $89 in the previous session. Strattec Security has gained 14.7% since the start of the year compared to the -3.6% gain for the Zacks Auto-Tires-Trucks sector and the 2.4% return for the Zacks Automotive - Original Equipment industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 30, 2025, Strattec Security reported EPS of $2.22 versus consensus estimate of $1.48.
For the current fiscal year, Strattec Security is expected to post earnings of $5.4 per share on $559.91 in revenues. This represents a 0.37% change in EPS on a -0.91% change in revenues. For the next fiscal year, the company is expected to earn $5.79 per share on $571.11 in revenues. This represents a year-over-year change of 7.22% and 2%, respectively.
Valuation Metrics
Though Strattec Security has recently hit a 52-week high, what is next for Strattec Security? 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). 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Strattec Security has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.4X. On a trailing cash flow basis, the stock currently trades at 9.9X versus its peer group's average of 9X. Additionally, the stock has a PEG ratio of 1.62. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Strattec Security an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Strattec Security 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 Strattec Security meets the list of requirements. Thus, it seems as though Strattec Security shares could have potential in the weeks and months to come.
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Strattec Security Corporation (STRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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