A strong stock as of late has been V2X (VVX). Shares have been marching higher, with the stock up 7.9% over the past month. The stock hit a new 52-week high of $78.36 in the previous session. V2X has gained 40.2% since the start of the year compared to the -9.9% gain for the Zacks Business Services sector and the -2.6% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has an impressive 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 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 $6.01 per share on $4.74 in revenues. This represents a 14.69% change in EPS on a 5.85% change in revenues. For the next fiscal year, the company is expected to earn $6.89 per share on $5.11 in revenues. This represents a year-over-year change of 14.71% and 7.69%, respectively.
Valuation Metrics
While V2X has moved to its 52-week high over the past few weeks, 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 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 A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 8.4X versus its peer group's average of 11.9X. Additionally, the stock has a PEG ratio of 0.63. 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 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 V2X passes the test. Thus, it seems as though V2X shares could have potential in the weeks and months to come.
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 Dave Inc. (DAVE). DAVE has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Dave Inc. beat our consensus estimate by 27.27%, and for the current fiscal year, DAVE is expected to post earnings of $14.82 per share on revenue of $696.6 million.
Shares of Dave Inc. have gained 59.3% over the past month, and currently trade at a forward P/E of 17.8X and a P/CF of 20.5X.
The Technology Services industry may rank in the bottom 72% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for VVX and DAVE, even beyond their own solid fundamental situation.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
V2X, Inc. (VVX): Free Stock Analysis Report
Dave Inc. (DAVE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).