Have you been paying attention to shares of Douglas Dynamics (PLOW Quick QuotePLOW - Free Report) ? Shares have been on the move with the stock up 11.4% over the past month. The stock hit a new 52-week high of $32.41 in the previous session. Douglas Dynamics has gained 36.5% since the start of the year compared to the -8.2% move for the Zacks Auto-Tires-Trucks sector and the -4.2% return for the Zacks Automotive - Replacement Parts industry.

What's Driving the Outperformance?

The stock has an impressive 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 4, 2025, Douglas Dynamics reported EPS of $1.14 versus consensus estimate of $0.84.

For the current fiscal year, Douglas Dynamics is expected to post earnings of $2.16 per share on $644.1 in revenues. This represents a 46.94% change in EPS on a 13.3% change in revenues. For the next fiscal year, the company is expected to earn $2.34 per share on $673.9 in revenues. This represents a year-over-year change of 8.33% and 4.63%, respectively.

Valuation Metrics

Though Douglas Dynamics has recently hit a 52-week high, what is next for Douglas Dynamics? 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 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. 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 B and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 14.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.4X. On a trailing cash flow basis, the stock currently trades at 15.2X versus its peer group's average of 8.5X. Additionally, the stock has a PEG ratio of 1.07. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Douglas Dynamics 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 Douglas Dynamics meets the list of requirements. 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 Standard Motor Products, Inc. (SMP Quick QuoteSMP - Free Report) . SMP has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.

Earnings were strong last quarter. Standard Motor Products, Inc. beat our consensus estimate by 32.99%, and for the current fiscal year, SMP is expected to post earnings of $3.67 per share on revenue of $1.74 billion.

Shares of Standard Motor Products, Inc. have gained 23.6% over the past month, and currently trade at a forward P/E of 10.96X and a P/CF of 8.41X.

The Automotive - Replacement Parts industry may rank in the bottom 71% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for PLOW and SMP, even beyond their own solid fundamental situation.