Have you been paying attention to shares of Korn/Ferry (KFY)? Shares have been on the move with the stock up 10% over the past month. The stock hit a new 52-week high of $79.97 in the previous session. Korn/Ferry has gained 19.1% since the start of the year compared to the -8.7% gain for the Zacks Business Services sector and the 47.8% return for the Zacks Staffing Firms industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 23, 2026, Korn/Ferry reported EPS of $1.4 versus consensus estimate of $1.37 while it beat the consensus revenue estimate by 2.74%.
For the current fiscal year, Korn/Ferry is expected to post earnings of $5.75 per share on $3.03 in revenues. This represents a 8.9% change in EPS on a 4.32% change in revenues. For the next fiscal year, the company is expected to earn $6.33 per share on $3.21 in revenues. This represents a year-over-year change of 10.09% and 5.77%, respectively.
Valuation Metrics
Though Korn/Ferry has recently hit a 52-week high, what is next for Korn/Ferry? 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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.
Korn/Ferry has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 13.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.2X. On a trailing cash flow basis, the stock currently trades at 10.7X versus its peer group's average of 10.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Korn/Ferry an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Korn/Ferry 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 Korn/Ferry passes the test. Thus, it seems as though Korn/Ferry shares could still be poised for more gains ahead.
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This article originally published on Zacks Investment Research (zacks.com).