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Envela Corporation (ELA) Hit a 52 Week High, Can the Run Continue?

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Have you been paying attention to shares of Envela Corporation (ELA - Free Report) ? Shares have been on the move with the stock up 44.3% over the past month. The stock hit a new 52-week high of $11.29 in the previous session. Envela has gained 56.6% since the start of the year compared to the 8.8% move for the Zacks Retail-Wholesale sector and the 17.9% return for the Zacks Retail - Jewelry 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 November 5, 2025, Envela reported EPS of $0.13 versus consensus estimate of $0.06.

For the current fiscal year, Envela is expected to post earnings of $0.42 per share on $210.21 in revenues. This represents a 61.54% change in EPS on a 16.51% change in revenues. For the next fiscal year, the company is expected to earn $0.45 per share on $227.02 in revenues. This represents a year-over-year change of 7.14% and 8%, respectively.

Valuation Metrics

Envela 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). 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.

Envela has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 26.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 26.8X. On a trailing cash flow basis, the stock currently trades at 35.2X versus its peer group's average of 20.3X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Envela 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 Envela passes the test. Thus, it seems as though Envela shares could still be poised for more gains ahead.


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