Have you been paying attention to shares of UL Solutions Inc. (ULS Quick QuoteULS - Free Report) ? Shares have been on the move with the stock up 22.4% over the past month. The stock hit a new 52-week high of $71.95 in the previous session. UL Solutions Inc. has gained 41% since the start of the year compared to the 3.5% move for the Zacks Business Services sector and the 13.4% return for the Zacks Business - Services 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 6, 2025, UL Solutions Inc. reported EPS of $0.37 versus consensus estimate of $0.32.

For the current fiscal year, UL Solutions Inc. is expected to post earnings of $1.77 per share on $3.02 billion in revenues. This represents a 4.12% change in EPS on a 5.38% change in revenues. For the next fiscal year, the company is expected to earn $1.93 per share on $3.2 billion in revenues. This represents a year-over-year change of 9.15% and 5.75%, respectively.

Valuation Metrics

UL Solutions Inc. may be at a 52-week high right now, but what might the future hold for the stock? 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). 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.

UL Solutions Inc. has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 39.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.1X. On a trailing cash flow basis, the stock currently trades at 26.4X versus its peer group's average of 9.5X. 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, UL Solutions Inc. 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 UL Solutions Inc. passes the test. Thus, it seems as though UL Solutions Inc. shares could have a bit more room to run in the near term.

How Does ULS Stack Up to the Competition?

Shares of ULS 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 Bright Horizons Family Solutions Inc. (BFAM Quick QuoteBFAM - Free Report) . BFAM 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. Bright Horizons Family Solutions Inc. beat our consensus estimate by 22.22%, and for the current fiscal year, BFAM is expected to post earnings of $4.11 per share on revenue of $2.89 billion.

Shares of Bright Horizons Family Solutions Inc. have gained 4% over the past month, and currently trade at a forward P/E of 29.93X and a P/CF of 25.96X.

The Business - Services industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ULS and BFAM, even beyond their own solid fundamental situation.