Have you been paying attention to shares of Flexsteel Industries (FLXS)? Shares have been on the move with the stock up 9.3% over the past month. The stock hit a new 52-week high of $90 in the previous session. Flexsteel has gained 126.3% since the start of the year compared to the -14% gain for the Zacks Consumer Discretionary sector and the -15.6% return for the Zacks Furniture 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 17, 2026, Flexsteel reported EPS of $1.33 versus consensus estimate of $1.15.
For the current fiscal year, Flexsteel is expected to post earnings of $5.29 per share on $476.01 in revenues. This represents a 7.09% change in EPS on a 3.67% change in revenues. For the next fiscal year, the company is expected to earn $6.05 per share on $496.37 in revenues. This represents a year-over-year change of 14.37% and 4.28%, respectively.
Valuation Metrics
While Flexsteel has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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. The idea behind the style scores is to help investors 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 A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.3X. On a trailing cash flow basis, the stock currently trades at 15.5X versus its peer group's average of 4.9X. Additionally, the stock has a PEG ratio of 1.41. 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, Flexsteel currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
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 have potential in the weeks and months to come.
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Flexsteel Industries, Inc. (FLXS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).