Standard Motor Products, Inc. (SMP) Hit a 52 Week High, Can the Run Continue?

Shares of Standard Motor Products (SMP) have been strong performers lately, with the stock up 0.8% over the past month. The stock hit a new 52-week high of $42.13 in the previous session. Standard Motor Products has gained 33.8% since the start of the year compared to the 8.8% move for the Zacks Auto-Tires-Trucks sector and the -6.8% 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 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 $3.76 per share on $1.77 in revenues. This represents a 18.61% change in EPS on a 20.94% change in revenues. For the next fiscal year, the company is expected to earn $4.27 per share on $1.82 in revenues. This represents a year-over-year change of 13.56% and 2.6%, respectively.Valuation MetricsStandard Motor Products 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 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.Standard Motor Products has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 11X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.9X. On a trailing cash flow basis, the stock currently trades at 8.7X versus its peer group's average of 9.4X. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. 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 still be poised for more gains ahead.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks 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 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