Universal Technical Institute Inc (UTI) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Universal Technical Institute (UTI)? Shares have been on the move with the stock up 21.7% over the past month. The stock hit a new 52-week high of $33.67 in the previous session. Universal Technical Institute has gained 27.5% since the start of the year compared to the 0.1% move for the Zacks Consumer Discretionary sector and the 5.9% return for the Zacks Schools 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 7, 2025, Universal Technical reported EPS of $0.21 versus consensus estimate of $0.12.For the current fiscal year, Universal Technical is expected to post earnings of $1.03 per share on $815.07 million in revenues. This represents a 37.33% change in EPS on a 11.24% change in revenues. For the next fiscal year, the company is expected to earn $1.04 per share on $885.34 million in revenues. This represents a year-over-year change of 1.46% and 8.62%, respectively.Valuation MetricsUniversal Technical 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 these give investors a variety of ways to comb 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.Universal Technical has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 31.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.8X. On a trailing cash flow basis, the stock currently trades at 18.9X versus its peer group's average of 12.1X. Additionally, the stock has a PEG ratio of 2.13. 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, Universal Technical 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 Universal Technical fits the bill. Thus, it seems as though Universal Technical shares could have a bit more room to run in the near term.How Does UTI Stack Up to the Competition?Shares of UTI 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 Perdoceo Education Corporation (PRDO). PRDO has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.Earnings were strong last quarter. Perdoceo Education Corporation beat our consensus estimate by 6.06%, and for the current fiscal year, PRDO is expected to post earnings of $2.49 per share on revenue of $832.34 million.Shares of Perdoceo Education Corporation have gained 16.9% over the past month, and currently trade at a forward P/E of 12.1X and a P/CF of 11.72X.The Schools industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for UTI and PRDO, 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 among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.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 Universal Technical Institute Inc (UTI): Free Stock Analysis Report Perdoceo Education Corporation (PRDO): 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