Potbelly Corporation (PBPB) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Potbelly (PBPB). Shares have been marching higher, with the stock up 2.9% over the past month. The stock hit a new 52-week high of $13.67 in the previous session. Potbelly has gained 38.2% since the start of the year compared to the 6.4% gain for the Zacks Retail-Wholesale sector and the -2.7% return for the Zacks Retail - Restaurants 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 6, 2025, Potbelly reported EPS of $0.09 versus consensus estimate of $0.08.For the current fiscal year, Potbelly is expected to post earnings of $0.23 per share on $476 in revenues. This represents a -23.33% change in EPS on a 2.9% change in revenues. For the next fiscal year, the company is expected to earn $0.3 per share on $498.2 in revenues. This represents a year-over-year change of 30.43% and 4.66%, respectively.Valuation MetricsWhile Potbelly 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 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.Potbelly has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 56.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.4X. On a trailing cash flow basis, the stock currently trades at 17.7X versus its peer group's average of 11.7X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Potbelly currently has a Zacks Rank of #2 (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 Potbelly fits the bill. Thus, it seems as though Potbelly shares could have a bit more room to run in the near term.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 Potbelly Corporation (PBPB): 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