Alerus Financial (ALRS) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Alerus (ALRS)? Shares have been on the move with the stock up 2.9% over the past month. The stock hit a new 52-week high of $24.42 in the previous session. Alerus has gained 7.2% since the start of the year compared to the 19.1% move for the Zacks Finance sector and the -8.2% return for the Zacks Financial - Miscellaneous 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 October 30, 2025, Alerus reported EPS of $0.66 versus consensus estimate of $0.59 while it beat the consensus revenue estimate by 2.31%.For the current fiscal year, Alerus is expected to post earnings of $2.52 per share on $287.05 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.75 per share on $303.15 in revenues. This represents a year-over-year change of 0.53% and 5.61%, respectively.Valuation MetricsAlerus may be at a 52-week high right now, but what might the future hold for the stock? 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.Alerus has a Value Score of A. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 9.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.8X. On a trailing cash flow basis, the stock currently trades at 13X versus its peer group's average of 11.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Alerus an interesting choice for value investors.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Alerus 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 Alerus fits the bill. Thus, it seems as though Alerus shares could still be poised for more gains ahead.How Does ALRS Stack Up to the Competition?Shares of ALRS 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 Pagaya Technologies Ltd. (PGY). PGY has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. Pagaya Technologies Ltd. beat our consensus estimate by 64.52%, and for the current fiscal year, PGY is expected to post earnings of $3.41 per share on revenue of $1.32 billion.Shares of Pagaya Technologies Ltd. have gained 14.7% over the past month, and currently trade at a forward P/E of 7.63X and a P/CF of 56.36X.The Financial - Miscellaneous Services industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ALRS and PGY, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Alerus Financial (ALRS): Free Stock Analysis Report Pagaya Technologies Ltd. (PGY): 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