Shares of APi (APG) have been strong performers lately, with the stock up 6.8% over the past month. The stock hit a new 52-week high of $46.89 in the previous session. APi has gained 17% since the start of the year compared to the -8.5% move for the Zacks Business Services sector and the -7.9% return for the Zacks Business - Services 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 February 25, 2026, APi reported EPS of $0.44 versus consensus estimate of $0.4.
For the current fiscal year, APi is expected to post earnings of $1.64 per share on $8.46 in revenues. This represents a 10.81% change in EPS on a 6.9% change in revenues. For the next fiscal year, the company is expected to earn $1.82 per share on $8.82 in revenues. This represents a year-over-year change of 10.55% and 4.28%, respectively.
Valuation Metrics
Though APi has recently hit a 52-week high, what is next for APi? 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.
APi has a Value Score of C. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 27.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.1X. On a trailing cash flow basis, the stock currently trades at 12.1X versus its peer group's average of 12X. 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 is even more important than the company's VGM Score. Fortunately, APi 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 APi fits the bill. Thus, it seems as though APi shares could still be poised for more gains ahead.
How Does APG Stack Up to the Competition?
Shares of APG 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 UL Solutions Inc. (ULS). ULS has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. UL Solutions Inc. beat our consensus estimate by 15.22%, and for the current fiscal year, ULS is expected to post earnings of $2.17 per share on revenue of $3.21 billion.
Shares of UL Solutions Inc. have gained 13.6% over the past month, and currently trade at a forward P/E of 37.87X and a P/CF of 29.74X.
The Business - Services industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for APG and ULS, even beyond their own solid fundamental situation.
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APi Group Corporation (APG): Free Stock Analysis Report UL Solutions Inc. (ULS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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