Have you been paying attention to shares of Envista (NVST)? Shares have been on the move with the stock up 23.2% over the past month. The stock hit a new 52-week high of $29.28 in the previous session. Envista has gained 34% since the start of the year compared to the 5.3% move for the Zacks Medical sector and the -3.3% return for the Zacks Medical - Products 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 February 5, 2026, Envista reported EPS of $0.38 versus consensus estimate of $0.32.
For the current fiscal year, Envista is expected to post earnings of $1.36 per share on $2.82 in revenues. This represents a 14.29% change in EPS on a 3.64% change in revenues. For the next fiscal year, the company is expected to earn $1.47 per share on $2.85 in revenues. This represents a year-over-year change of 8.3% and 0.98%, respectively.
Valuation Metrics
Though Envista has recently hit a 52-week high, what is next for Envista? 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.
Envista has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 21.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.5X. On a trailing cash flow basis, the stock currently trades at 13.4X versus its peer group's average of 9.5X. Additionally, the stock has a PEG ratio of 1.2. 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, Envista currently has a Zacks Rank of #1 (Strong 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 Envista fits the bill. Thus, it seems as though Envista shares could have a bit more room to run in the near term.
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Envista Holdings Corporation (NVST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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