Elbit Systems Ltd. (ESLT) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Elbit Systems (ESLT)? Shares have been on the move with the stock up 10.7% over the past month. The stock hit a new 52-week high of $433.18 in the previous session. Elbit Systems has gained 67.2% since the start of the year compared to the 18.7% move for the Zacks Aerospace sector and the 19% return for the Zacks Aerospace - Defense Equipment 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 May 20, 2025, Elbit reported EPS of $2.57 versus consensus estimate of $2.3 while it beat the consensus revenue estimate by 12.31%.For the current fiscal year, Elbit is expected to post earnings of $10.85 per share on $7.77 billion in revenues. This represents a 23.86% change in EPS on a 13.84% change in revenues. For the next fiscal year, the company is expected to earn $13.65 per share on $8.54 billion in revenues. This represents a year-over-year change of 25.81% and 9.91%, respectively.Valuation MetricsElbit 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. 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.Elbit has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 39.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 37.6X. On a trailing cash flow basis, the stock currently trades at 34.9X versus its peer group's average of 22.6X. 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, Elbit currently has a Zacks Rank of #1 (Strong 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 Elbit fits the bill. Thus, it seems as though Elbit shares could have potential in the weeks and months to come.How Does ESLT Stack Up to the Competition?Shares of ESLT 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 Astronics Corporation (ATRO). ATRO 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. Astronics Corporation beat our consensus estimate by 76%, and for the current fiscal year, ATRO is expected to post earnings of $1.50 per share on revenue of $846.29 million.Shares of Astronics Corporation have gained 18.6% over the past month, and currently trade at a forward P/E of 23.87X and a P/CF of 19.19X.The Aerospace - Defense Equipment industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ESLT and ATRO, even beyond their own solid fundamental situation.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Elbit Systems Ltd. (ESLT): Free Stock Analysis Report Astronics Corporation (ATRO): 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