A strong stock as of late has been Flexsteel Industries (FLXS). Shares have been marching higher, with the stock up 24.2% over the past month. The stock hit a new 52-week high of $77.19 in the previous session. Flexsteel has gained 83.6% since the start of the year compared to the -7.6% gain for the Zacks Consumer Discretionary sector and the 9.6% return for the Zacks Furniture 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 April 20, 2026, Flexsteel reported EPS of $1.14 versus consensus estimate of $0.75 while it beat the consensus revenue estimate by 1.22%.
For the current fiscal year, Flexsteel is expected to post earnings of $5.05 per share on $457.84 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $5.78 per share on $472.48 in revenues. This represents a year-over-year change of 5.65% and 3.2%, respectively.
Valuation Metrics
Though Flexsteel has recently hit a 52-week high, what is next for Flexsteel? 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.
Flexsteel has a Value Score of B. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.9X. On a trailing cash flow basis, the stock currently trades at 14X versus its peer group's average of 6.7X. Additionally, the stock has a PEG ratio of 1.2. 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, Flexsteel 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 Flexsteel fits the bill. Thus, it seems as though Flexsteel shares could still be poised for more gains ahead.
How Does FLXS Stack Up to the Competition?
Shares of FLXS 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 Hooker Furnishings Corp. (HOFT). HOFT has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Hooker Furnishings Corp. beat our consensus estimate by 242.86%, and for the current fiscal year, HOFT is expected to post earnings of $0.78 per share on revenue of $308.65 million.
Shares of Hooker Furnishings Corp. have gained 31.7% over the past month, and currently trade at a forward P/E of 21.56X and a P/CF of 18.38X.
The Furniture industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FLXS and HOFT, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).