Shares of DHI Group (DHX) have been strong performers lately, with the stock up 10.9% over the past month. The stock hit a new 52-week high of $4.79 in the previous session. DHI Group has gained 195.5% since the start of the year compared to the 17.6% gain for the Zacks Computer and Technology sector and the -11.5% return for the Zacks Internet - Content 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 August 5, 2026, DHI Group reported EPS of $0.09 versus consensus estimate of $0.07.
For the current fiscal year, DHI Group is expected to post earnings of $0.34 per share on $124.74 in revenues. This represents a 17.24% change in EPS on a -2.41% change in revenues. For the next fiscal year, the company is expected to earn $0.38 per share on $129.17 in revenues. This represents a year-over-year change of 11.76% and 3.55%, respectively.
Valuation Metrics
DHI Group 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
DHI Group has a Value Score of B. The stock's Growth and Momentum Scores are B and C, 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 13.8X. On a trailing cash flow basis, the stock currently trades at 6.7X versus its peer group's average of 7.9X. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, DHI Group 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 DHI Group passes the test. Thus, it seems as though DHI Group shares could have a bit more room to run in the near term.
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DHI Group, Inc. (DHX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).