Have you been paying attention to shares of Strattec Security (STRT)? Shares have been on the move with the stock up 47% over the past month. The stock hit a new 52-week high of $54.01 in the previous session. Strattec Security has gained 29.3% since the start of the year compared to the -11.1% move for the Zacks Auto-Tires-Trucks sector and the 1.7% return for the Zacks Automotive - Original Equipment industry.

What's Driving the Outperformance?

The stock has a great 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 8, 2025, Strattec Security reported EPS of $1.5 versus consensus estimate of $0.95.

For the current fiscal year, Strattec Security is expected to post earnings of $4.40 per share on $556.56 million in revenues. This represents an 8.11% change in EPS on a 3.49% change in revenues. For the next fiscal year, the company is expected to earn $4.75 per share on $564.23 million in revenues. This represents a year-over-year change of 7.95% and 1.38%, respectively.

Valuation Metrics

Strattec Security 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 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.

Advertisement: High Yield Savings Offers

Earn 4.10% APY** on balances of $5,000 or more

View Offer

Earn up to 4.00% APY with Savings Pods

View Offer

Earn up to 3.80% APY¹ & up to $300 Cash Bonus with Direct Deposit

View Offer

Powered by Money.com - Yahoo may earn commission from the links above.

Strattec Security has a Value Score of A. 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 12.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 6.6X versus its peer group's average of 6.2X. Additionally, the stock has a PEG ratio of 1.21. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Strattec Security currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.