Strattec Security Corporation (STRT) Hit a 52 Week High, Can the Run Continue?

Shares of Strattec Security (STRT) have been strong performers lately, with the stock up 14.7% over the past month. The stock hit a new 52-week high of $66.1 in the previous session. Strattec Security has gained 51% since the start of the year compared to the -14.7% move for the Zacks Auto-Tires-Trucks sector and the 5.3% return for the Zacks Automotive - Original Equipment 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 May 8, 2025, Strattec Security reported EPS of $1.5 versus consensus estimate of $0.95.

For the current fiscal year, Strattec Security is expected to post earnings of $4.4 per share on $556.56 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $4.75 per share on $564.23 in revenues. This represents a year-over-year change of 7.95% and 1.38%, respectively.

Valuation Metrics

Though Strattec Security has recently hit a 52-week high, what is next for Strattec Security? 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. 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.

Strattec Security has a Value Score of A. The stock's Growth and Momentum Scores are A and C, 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 a premium to the peer industry average of 12.7X. On a trailing cash flow basis, the stock currently trades at 7.7X versus its peer group's average of 6.5X. Additionally, the stock has a PEG ratio of 1.41. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Strattec Security 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, Strattec Security 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 Strattec Security meets the list of requirements. Thus, it seems as though Strattec Security shares could still be poised for more gains ahead.

How Does STRT Stack Up to the Competition?

Shares of STRT 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 XPEL, Inc. (XPEL). XPEL has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.

Earnings were strong last quarter. XPEL, Inc. beat our consensus estimate by 24.00%, and for the current fiscal year, XPEL is expected to post earnings of $1.81 per share on revenue of $460.31 million.

Shares of XPEL, Inc. have gained 0.5% over the past month, and currently trade at a forward P/E of 19.83X and a P/CF of 17.11X.

The Automotive - Original Equipment industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for STRT and XPEL, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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