Shares of Douglas Dynamics (PLOW Quick QuotePLOW - Free Report) have been strong performers lately, with the stock up 14% over the past month. The stock hit a new 52-week high of $31.42 in the previous session. Douglas Dynamics has gained 32.7% since the start of the year compared to the -13.8% move for the Zacks Auto-Tires-Trucks sector and the 2.1% return for the Zacks Automotive - Replacement Parts 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 5, 2025, Douglas Dynamics reported EPS of $0.09 versus consensus estimate of -$0.16 while it beat the consensus revenue estimate by 9.9%.

For the current fiscal year, Douglas Dynamics is expected to post earnings of $2.05 per share on $634.7 in revenues. This represents a 39.46% change in EPS on a 11.64% change in revenues. For the next fiscal year, the company is expected to earn $2.3 per share on $666 in revenues. This represents a year-over-year change of 12.2% and 4.93%, respectively.

Valuation Metrics

Douglas Dynamics 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.

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

In terms of its value breakdown, the stock currently trades at 15.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.8X. On a trailing cash flow basis, the stock currently trades at 14.8X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 1.09. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Douglas Dynamics an interesting choice for value investors.

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, Douglas Dynamics currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

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 Douglas Dynamics passes the test. Thus, it seems as though Douglas Dynamics shares could have potential in the weeks and months to come.

How Does PLOW Stack Up to the Competition?

Shares of PLOW 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 Dorman Products, Inc. (DORM Quick QuoteDORM - Free Report) . DORM has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of B.

Earnings were strong last quarter. Dorman Products, Inc. beat our consensus estimate by 36.49%, and for the current fiscal year, DORM is expected to post earnings of $7.82 per share on revenue of $2.1 billion.

Shares of Dorman Products, Inc. have gained 0.9% over the past month, and currently trade at a forward P/E of 16.37X and a P/CF of 14.09X.

The Automotive - Replacement Parts industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PLOW and DORM, even beyond their own solid fundamental situation.