Visteon Corporation (VC) Hits Fresh High: Is There Still Room to Run?

Shares of Visteon (VC) have been strong performers lately, with the stock up 13.5% over the past month. The stock hit a new 52-week high of $129.1 in the previous session. Visteon has gained 45.1% since the start of the year compared to the -5.9% gain for the Zacks Auto-Tires-Trucks sector and the 12.7% return for the Zacks Automotive - Original Equipment 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 24, 2025, Visteon reported EPS of $2.39 versus consensus estimate of $2.04.For the current fiscal year, Visteon is expected to post earnings of $8.69 per share on $3.76 in revenues. This represents a -19.98% change in EPS on a -2.65% change in revenues. For the next fiscal year, the company is expected to earn $9.27 per share on $3.88 in revenues. This represents a year-over-year change of 6.73% and 2.98%, respectively.Valuation MetricsVisteon 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 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. 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.Visteon 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 B.In terms of its value breakdown, the stock currently trades at 14.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.5X. On a trailing cash flow basis, the stock currently trades at 8.9X versus its peer group's average of 8.6X. Additionally, the stock has a PEG ratio of 4.98. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Visteon an interesting choice for value investors.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Visteon currently has a Zacks Rank of #1 (Strong 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 Visteon passes the test. Thus, it seems as though Visteon shares could have a bit more room to run in the near term.How Does VC Stack Up to the Competition?Shares of VC 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 Garrett Motion Inc. (GTX). GTX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. Garrett Motion Inc. beat our consensus estimate by 13.51%, and for the current fiscal year, GTX is expected to post earnings of $1.41 per share on revenue of $3.51 billion.Shares of Garrett Motion Inc. have gained 5.9% over the past month, and currently trade at a forward P/E of 9.37X and a P/CF of 6.9X.The Automotive - Original Equipment industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VC and GTX, even beyond their own solid fundamental situation.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free 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 Visteon Corporation (VC): Free Stock Analysis Report Garrett Motion Inc. (GTX): 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