Dorman Products, Inc. (DORM) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Dorman Products (DORM). Shares have been marching higher, with the stock up 16.4% over the past month. The stock hit a new 52-week high of $166.89 in the previous session. Dorman Products has gained 28.4% since the start of the year compared to the -5.9% move for the Zacks Auto-Tires-Trucks sector and the -2% return for the Zacks Automotive - Replacement Parts 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 August 4, 2025, Dorman Products reported EPS of $2.06 versus consensus estimate of $1.76 while it beat the consensus revenue estimate by 4.53%.For the current fiscal year, Dorman Products is expected to post earnings of $8.75 per share on $2.17 in revenues. This represents a 22.72% change in EPS on a 7.88% change in revenues. For the next fiscal year, the company is expected to earn $9.6 per share on $2.26 in revenues. This represents a year-over-year change of 9.66% and 4.34%, respectively.Valuation MetricsWhile Dorman Products has moved to its 52-week high over the past few weeks, 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Dorman Products has a Value Score of B. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 19X current fiscal year EPS estimates, which is a premium to the peer industry average of 13X. On a trailing cash flow basis, the stock currently trades at 18.3X versus its peer group's average of 8.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Dorman Products 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 Dorman Products passes the test. Thus, it seems as though Dorman Products shares could have potential in the weeks and months to come.How Does DORM Stack Up to the Competition?Shares of DORM 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 Standard Motor Products, Inc. (SMP). SMP has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of F.Earnings were strong last quarter. Standard Motor Products, Inc. beat our consensus estimate by 32.99%, and for the current fiscal year, SMP is expected to post earnings of $3.70 per share on revenue of $1.75 billion.Shares of Standard Motor Products, Inc. have gained 9.2% over the past month, and currently trade at a forward P/E of 10.98X and a P/CF of 8.5X.The Automotive - Replacement Parts industry may rank in the bottom 76% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for DORM and SMP, even beyond their own solid fundamental situation.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 Dorman Products, Inc. (DORM): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): 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