Valmont Industries, Inc. (VMI) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Valmont Industries (VMI). Shares have been marching higher, with the stock up 5.8% over the past month. The stock hit a new 52-week high of $389.29 in the previous session. Valmont has gained 26.4% since the start of the year compared to the 8% move for the Zacks Industrial Products sector and the 2.7% return for the Zacks Steel - Pipe and Tube 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 July 22, 2025, Valmont reported EPS of $4.88 versus consensus estimate of $4.72.For the current fiscal year, Valmont is expected to post earnings of $18.71 per share on $4.11 in revenues. This represents a 8.84% change in EPS on a 0.91% change in revenues. For the next fiscal year, the company is expected to earn $20.83 per share on $4.29 in revenues. This represents a year-over-year change of 11.34% and 4.39%, respectively.Valuation MetricsThough Valmont has recently hit a 52-week high, what is next for Valmont? 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Valmont has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 20.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 17.6X versus its peer group's average of 15.3X. 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 is even more important than the company's VGM Score. Fortunately, Valmont 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 Valmont fits the bill. Thus, it seems as though Valmont shares could have a bit more room to run in the near term.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 Valmont Industries, Inc. (VMI): 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