A strong stock as of late has been Kyocera (KYOCY). Shares have been marching higher, with the stock up 10.9% over the past month. The stock hit a new 52-week high of $19.32 in the previous session. Kyocera has gained 32.1% since the start of the year compared to the 18.7% move for the Zacks Computer and Technology sector and the -6.6% return for the Zacks Electronics - Miscellaneous Components 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 April 30, 2026, Kyocera reported EPS of $0.2 versus consensus estimate of $0.11.
Valuation Metrics
Though Kyocera has recently hit a 52-week high, what is next for Kyocera? 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). 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.
Kyocera has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 32.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 38.5X. On a trailing cash flow basis, the stock currently trades at 21.6X versus its peer group's average of 19.3X. 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 is even more important than the company's VGM Score. Fortunately, Kyocera currently has a Zacks Rank of #2 (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 Kyocera passes the test. Thus, it seems as though Kyocera shares could have a bit more room to run in the near term.
How Does KYOCY Stack Up to the Competition?
Shares of KYOCY 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 CTS Corporation (CTS). CTS has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. CTS Corporation beat our consensus estimate by 19.23%, and for the current fiscal year, CTS is expected to post earnings of $2.43 per share on revenue of $571.09 million.
Shares of CTS Corporation have gained 12.3% over the past month, and currently trade at a forward P/E of 25.22X and a P/CF of 17.66X.
The Electronics - Miscellaneous Components industry is in the top 22% of all the industries we have in our universe, so it looks like there are some nice tailwinds for KYOCY and CTS, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).