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Dorman Products, Inc. (DORM) Soars to 52-Week High, Time to Cash Out?

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A strong stock as of late has been Dorman Products (DORM - Free Report) . Shares have been marching higher, with the stock up 24% over the past month. The stock hit a new 52-week high of $150.24 in the previous session. Dorman Products has gained 15.5% since the start of the year compared to the -8.5% gain for the Zacks Auto-Tires-Trucks sector and the -8.2% 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 August 4, 2025, Dorman Products reported EPS of $2.06 versus consensus estimate of $1.76 while it beat the consensus revenue estimate by 4.53%.

For the current fiscal year, Dorman Products is expected to post earnings of $8.15 per share on $2.13 in revenues. This represents a 14.31% change in EPS on a 5.98% change in revenues. For the next fiscal year, the company is expected to earn $8.79 per share on $2.23 in revenues. This represents a year-over-year change of 7.85% and 4.77%, respectively.

Valuation Metrics

Dorman Products 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 is due for a pullback from this level.

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). 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.

Dorman Products has a Value Score of B. 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 18.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 14X. On a trailing cash flow basis, the stock currently trades at 16.5X versus its peer group's average of 8.5X. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Dorman Products 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 Dorman Products passes the test. Thus, it seems as though Dorman Products shares could still be poised for more gains ahead.

How Does DORM Stack Up to the Competition?

Shares of DORM 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 Douglas Dynamics, Inc. (PLOW - Free Report) . PLOW has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.

Earnings were strong last quarter. Douglas Dynamics, Inc. beat our consensus estimate by 35.71%, and for the current fiscal year, PLOW is expected to post earnings of $2.16 per share on revenue of $644.1 million.

Shares of Douglas Dynamics, Inc. have gained 7.9% over the past month, and currently trade at a forward P/E of 14.62X and a P/CF of 14.91X.

The Automotive - Replacement Parts industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DORM and PLOW, even beyond their own solid fundamental situation.


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