Have you been paying attention to shares of Flexsteel Industries (FLXS)? Shares have been on the move with the stock up 43.4% over the past month. The stock hit a new 52-week high of $59.95 in the previous session. Flexsteel has gained 45.7% since the start of the year compared to the -3% gain for the Zacks Consumer Discretionary sector and the 18.1% return for the Zacks Furniture industry.
What's Driving the Outperformance?
The stock has an impressive 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 February 2, 2026, Flexsteel reported EPS of $1.18 versus consensus estimate of $0.79.
For the current fiscal year, Flexsteel is expected to post earnings of $4.09 per share on $465.62 in revenues. This represents a -1.92% change in EPS on a 5.57% change in revenues. For the next fiscal year, the company is expected to earn $4.18 per share on $481.08 in revenues. This represents a year-over-year change of 2.2% and 3.32%, respectively.
Valuation Metrics
Though Flexsteel has recently hit a 52-week high, what is next for Flexsteel? 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.
Flexsteel has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.4X. On a trailing cash flow basis, the stock currently trades at 11.1X versus its peer group's average of 6.2X. Additionally, the stock has a PEG ratio of 1.17. 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 is even more important than the company's VGM Score. Fortunately, Flexsteel currently has a Zacks Rank of #1 (Strong 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 Flexsteel fits the bill. Thus, it seems as though Flexsteel shares could have a bit more room to run in the near term.
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Flexsteel Industries, Inc. (FLXS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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