Shares of Eni SpA (E) have been strong performers lately, with the stock up 13.3% over the past month. The stock hit a new 52-week high of $48.92 in the previous session. Eni SpA has gained 27.4% since the start of the year compared to the 22.8% gain for the Zacks Oils-Energy sector and the 24.5% return for the Zacks Oil and Gas - Integrated - International 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 26, 2026, Eni SpA reported EPS of $0.87 versus consensus estimate of $0.78 while it beat the consensus revenue estimate by 14.1%.
For the current fiscal year, Eni SpA is expected to post earnings of $3.86 per share on $99.34 in revenues. This represents a 10.29% change in EPS on a 5.33% change in revenues. For the next fiscal year, the company is expected to earn $4.3 per share on $101.38 in revenues. This represents a year-over-year change of 11.61% and 2.05%, respectively.
Valuation Metrics
Though Eni SpA has recently hit a 52-week high, what is next for Eni SpA? 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Eni SpA has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.7X. On a trailing cash flow basis, the stock currently trades at 5.8X versus its peer group's average of 5.6X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Eni SpA an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Eni SpA 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 Eni SpA fits the bill. Thus, it seems as though Eni SpA shares could have a bit more room to run in the near term.
How Does E Stack Up to the Competition?
Shares of E 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 OMV AG (OMVKY). OMVKY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. OMV AG beat our consensus estimate by 418.42%, and for the current fiscal year, OMVKY is expected to post earnings of $1.73 per share on revenue of $32.71 billion.
Shares of OMV AG have gained 6.6% over the past month, and currently trade at a forward P/E of 9.64X and a P/CF of 4.34X.
The Oil and Gas - Integrated - International industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for E and OMVKY, even beyond their own solid fundamental situation.
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Eni SpA (E): Free Stock Analysis Report OMV AG (OMVKY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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