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Imperial Oil Limited (IMO) Hit a 52 Week High, Can the Run Continue?
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Shares of Imperial Oil (IMO - Free Report) have been strong performers lately, with the stock up 6.6% over the past month. The stock hit a new 52-week high of $89.84 in the previous session. Imperial Oil has gained 45.8% since the start of the year compared to the 4.6% gain for the Zacks Oils-Energy sector and the 13.6% return for the Zacks Oil and Gas - Integrated - Canadian industry.
What's Driving the Outperformance?
The stock has an impressive 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 1, 2025, Imperial Oil reported EPS of $1.34 versus consensus estimate of $1.22 while it missed the consensus revenue estimate by 23.02%.
For the current fiscal year, Imperial Oil is expected to post earnings of $5.69 per share on $38.74 in revenues. This represents a -13.66% change in EPS on a 2.97% change in revenues. For the next fiscal year, the company is expected to earn $5.33 per share on $42.41 in revenues. This represents a year-over-year change of -6.33% and 9.47%, respectively.
Valuation Metrics
While Imperial Oil has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Imperial Oil has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 15X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 7.3X. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Imperial Oil 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 Imperial Oil meets the list of requirements. Thus, it seems as though Imperial Oil shares could still be poised for more gains ahead.
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Imperial Oil Limited (IMO) Hit a 52 Week High, Can the Run Continue?
Shares of Imperial Oil (IMO - Free Report) have been strong performers lately, with the stock up 6.6% over the past month. The stock hit a new 52-week high of $89.84 in the previous session. Imperial Oil has gained 45.8% since the start of the year compared to the 4.6% gain for the Zacks Oils-Energy sector and the 13.6% return for the Zacks Oil and Gas - Integrated - Canadian industry.
What's Driving the Outperformance?
The stock has an impressive 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 1, 2025, Imperial Oil reported EPS of $1.34 versus consensus estimate of $1.22 while it missed the consensus revenue estimate by 23.02%.
For the current fiscal year, Imperial Oil is expected to post earnings of $5.69 per share on $38.74 in revenues. This represents a -13.66% change in EPS on a 2.97% change in revenues. For the next fiscal year, the company is expected to earn $5.33 per share on $42.41 in revenues. This represents a year-over-year change of -6.33% and 9.47%, respectively.
Valuation Metrics
While Imperial Oil has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Imperial Oil has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 15X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 7.3X. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Imperial Oil 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 Imperial Oil meets the list of requirements. Thus, it seems as though Imperial Oil shares could still be poised for more gains ahead.