Steelcase Inc. (SCS) Soars to 52-Week High, Time to Cash Out?

A strong stock as of late has been Steelcase (SCS). Shares have been marching higher, with the stock up 0.4% over the past month. The stock hit a new 52-week high of $17.4 in the previous session. Steelcase has gained 45.6% since the start of the year compared to the 2.1% move for the Zacks Business Services sector and the 1.7% return for the Zacks Business - Office Products 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 September 24, 2025, Steelcase reported EPS of $0.45 versus consensus estimate of $0.37 while it beat the consensus revenue estimate by 2.58%.For the current fiscal year, Steelcase is expected to post earnings of $1.1 per share on $3.28 in revenues. This represents a -1.79% change in EPS on a 3.61% change in revenues. For the next fiscal year, the company is expected to earn $1.29 per share on $3.39 in revenues. This represents a year-over-year change of 18.18% and 3.21%, respectively.Valuation MetricsWhile Steelcase 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 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.Steelcase 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 15.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.2X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 8.8X. Additionally, the stock has a PEG ratio of 1.57. 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, Steelcase 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 Steelcase meets the list of requirements. Thus, it seems as though Steelcase shares could have potential in the weeks and months to come.How Does SCS Stack Up to the Competition?Shares of SCS 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 Deluxe Corporation (DLX). DLX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.Earnings were strong last quarter. Deluxe Corporation beat our consensus estimate by 23.94%, and for the current fiscal year, DLX is expected to post earnings of $3.49 per share on revenue of $2.11 billion.Shares of Deluxe Corporation have gained 0.6% over the past month, and currently trade at a forward P/E of 5.63X and a P/CF of 2.49X.The Business - Office Products industry is in the top 5% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SCS and DLX, even beyond their own solid fundamental situation.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Steelcase Inc. (SCS): Free Stock Analysis Report Deluxe Corporation (DLX): 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