Standard Motor Products, Inc. (SMP) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Standard Motor Products (SMP)? Shares have been on the move with the stock up 7% over the past month. The stock hit a new 52-week high of $40.76 in the previous session. Standard Motor Products has gained 29.1% since the start of the year compared to the -3.3% move for the Zacks Auto-Tires-Trucks sector and the -2.6% return for the Zacks Automotive - Replacement Parts industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2025, Standard Motor Products reported EPS of $1.29 versus consensus estimate of $0.97 while it beat the consensus revenue estimate by 9.75%.For the current fiscal year, Standard Motor Products is expected to post earnings of $3.7 per share on $1.75 in revenues. This represents a 16.72% change in EPS on a 19.75% change in revenues. For the next fiscal year, the company is expected to earn $4.26 per share on $1.8 in revenues. This represents a year-over-year change of 15.05% and 2.54%, respectively.Valuation MetricsWhile Standard Motor Products has moved to its 52-week high in the recent past, 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 has run ahead of itself.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). 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. 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.Standard Motor Products has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 10.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.4X. On a trailing cash flow basis, the stock currently trades at 8.4X versus its peer group's average of 8.5X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Standard Motor Products an interesting choice for value investors.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Standard Motor Products 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 Standard Motor Products passes the test. Thus, it seems as though Standard Motor Products shares could have a bit more room to run in the near term.How Does SMP Stack Up to the Competition?Shares of SMP 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 Douglas Dynamics, Inc. (PLOW). PLOW has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.Earnings were strong last quarter. Douglas Dynamics, Inc. beat our consensus estimate by 35.71%, and for the current fiscal year, PLOW is expected to post earnings of $2.16 per share on revenue of $644.1 million.Shares of Douglas Dynamics, Inc. have gained 8.3% over the past month, and currently trade at a forward P/E of 15.49X and a P/CF of 15.8X.The Automotive - Replacement Parts industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SMP and PLOW, even beyond their own solid fundamental situation.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report Douglas Dynamics, Inc. (PLOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks