Have you been paying attention to shares of Helios Technologies (HLIO)? Shares have been on the move with the stock up 20.9% over the past month. The stock hit a new 52-week high of $83.09 in the previous session. Helios Technologies has gained 53.6% since the start of the year compared to the 15% move for the Zacks Industrial Products sector and the 4.9% return for the Zacks Manufacturing - General Industrial 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 May 11, 2026, Helios Technologies reported EPS of $0.8 versus consensus estimate of $0.68 while it beat the consensus revenue estimate by 6.66%.
For the current fiscal year, Helios Technologies is expected to post earnings of $2.89 per share on $862.89 in revenues. This represents a 12.89% change in EPS on a 2.85% change in revenues. For the next fiscal year, the company is expected to earn $3.27 per share on $904.33 in revenues. This represents a year-over-year change of 13.15% and 4.8%, respectively.
Valuation Metrics
Though Helios Technologies has recently hit a 52-week high, what is next for Helios Technologies? 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 these give investors a variety of ways to comb 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.
Helios Technologies has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 28.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.9X. On a trailing cash flow basis, the stock currently trades at 15.6X versus its peer group's average of 17.3X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Helios Technologies 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 Helios Technologies passes the test. Thus, it seems as though Helios Technologies shares could have potential in the weeks and months to come.
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Helios Technologies, Inc (HLIO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).