V2X, Inc. (VVX) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of V2X (VVX)? Shares have been on the move with the stock up 30.9% over the past month. The stock hit a new 52-week high of $91.64 in the previous session. V2X has gained 66.5% since the start of the year compared to the -11.9% gain for the Zacks Business Services sector and the -2.8% return for the Zacks Technology Services 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 May 4, 2026, V2X reported EPS of $1.53 versus consensus estimate of $1.18.

For the current fiscal year, V2X is expected to post earnings of $6.16 per share on $4.94 in revenues. This represents a 17.56% change in EPS on a 10.28% change in revenues. For the next fiscal year, the company is expected to earn $6.9 per share on $5.24 in revenues. This represents a year-over-year change of 12.08% and 6.13%, respectively.

Valuation Metrics

V2X 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 is due for a pullback from this level.

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.

V2X 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 15.4X. On a trailing cash flow basis, the stock currently trades at 10X versus its peer group's average of 12.4X. Additionally, the stock has a PEG ratio of 0.72. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making V2X an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, V2X currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

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 V2X passes the test. Thus, it seems as though V2X shares could still be poised for more gains ahead.

How Does VVX Stack Up to the Competition?

Shares of VVX 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 Priority Technology Holdings, Inc. (PRTH). PRTH has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of F.

Earnings were strong last quarter. Priority Technology Holdings, Inc. beat our consensus estimate by 27.27%, and for the current fiscal year, PRTH is expected to post earnings of $1.24 per share on revenue of $1.03 billion.

Shares of Priority Technology Holdings, Inc. have gained 5.1% over the past month, and currently trade at a forward P/E of 4.96X and a P/CF of 3.38X.

The Technology Services industry may rank in the bottom 66% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for VVX and PRTH, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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