Have you been paying attention to shares of Montauk Renewables (MNTK)? Shares have been on the move with the stock up 65.5% over the past month. The stock hit a new 52-week high of $3.04 in the previous session. Montauk Renewables has gained 75.5% since the start of the year compared to the 30.4% move for the Zacks Oils-Energy sector and the 7.8% return for the Zacks Alternative Energy - Other 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 August 5, 2026, Montauk Renewables reported EPS of $0 versus consensus estimate of -$0.02.
For the current fiscal year, Montauk Renewables is expected to post earnings of $0.12 per share on $213 in revenues. This represents a 1100% change in EPS on a 20.76% change in revenues. For the next fiscal year, the company is expected to earn $0.17 per share on $229.34 in revenues. This represents a year-over-year change of 41.67% and 7.67%, respectively.
Valuation Metrics
Though Montauk Renewables has recently hit a 52-week high, what is next for Montauk Renewables? 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Montauk Renewables has a Value Score of C. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.6X. On a trailing cash flow basis, the stock currently trades at 13X versus its peer group's average of 8.8X. 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, Montauk Renewables currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
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 Montauk Renewables passes the test. Thus, it seems as though Montauk Renewables shares could still be poised for more gains ahead.
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Montauk Renewables, Inc. (MNTK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).