Stantec Inc. (STN) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Stantec (STN)? Shares have been on the move with the stock up 16% over the past month. The stock hit a new 52-week high of $101.81 in the previous session. Stantec has gained 29.1% since the start of the year compared to the 4.8% move for the Zacks Business Services sector and the 0.1% return for the Zacks Consulting Services industry.What's Driving the Outperformance?The stock has an impressive 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 14, 2025, Stantec reported EPS of $0.81 versus consensus estimate of $0.79 while it beat the consensus revenue estimate by 4.49%.For the current fiscal year, Stantec is expected to post earnings of $3.86 per share on $4.77 billion in revenues. This represents a 19.5% change in EPS on a 11.37% change in revenues. For the next fiscal year, the company is expected to earn $4.31 per share on $5.11 billion in revenues. This represents a year-over-year change of 11.53% and 7.12%, respectively.Valuation MetricsStantec 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.Stantec has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 26.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 21X. On a trailing cash flow basis, the stock currently trades at 19.2X versus its peer group's average of 18.7X. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Stantec 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 Stantec fits the bill. Thus, it seems as though Stantec shares could still be poised for more gains ahead.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 +23.0% 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 Stantec Inc. (STN): 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