Have you been paying attention to shares of Viav Solutions (VIAV)? Shares have been on the move with the stock up 37.4% over the past month. The stock hit a new 52-week high of $28.31 in the previous session. Viav Solutions has gained 53.6% since the start of the year compared to the -2.2% move for the Zacks Computer and Technology sector and the 61.2% return for the Zacks Communication - Components 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 January 28, 2026, Viav Solutions reported EPS of $0.22 versus consensus estimate of $0.19.
For the current fiscal year, Viav Solutions is expected to post earnings of $0.8 per share on $1.46 in revenues. This represents a 70.21% change in EPS on a 35.09% change in revenues. For the next fiscal year, the company is expected to earn $0.95 per share on $1.66 in revenues. This represents a year-over-year change of 19.69% and 13.52%, respectively.
Valuation Metrics
While Viav Solutions 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). 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.
Viav Solutions has a Value Score of D. 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 34.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 34.3X. On a trailing cash flow basis, the stock currently trades at 42.8X versus its peer group's average of 13.4X. 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, Viav Solutions currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
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 Viav Solutions fits the bill. Thus, it seems as though Viav Solutions shares could still be poised for more gains ahead.
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Viavi Solutions Inc. (VIAV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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