Shares of Viav Solutions (VIAV Quick QuoteVIAV - Free Report) have been strong performers lately, with the stock up 2.4% over the past month. The stock hit a new 52-week high of $18.9 in the previous session. Viav Solutions has gained 84.1% since the start of the year compared to the 29% move for the Zacks Computer and Technology sector and the 102.3% return for the Zacks Communication - Components 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 October 29, 2025, Viav Solutions reported EPS of $0.15 versus consensus estimate of $0.13.

For the current fiscal year, Viav Solutions is expected to post earnings of $0.67 per share on $1.4 in revenues. This represents a 42.55% change in EPS on a 28.72% change in revenues. For the next fiscal year, the company is expected to earn $0.75 per share on $1.51 in revenues. This represents a year-over-year change of 12.19% and 8.18%, respectively.

Valuation Metrics

While Viav Solutions has moved to its 52-week high over the past few weeks, 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 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.

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

In terms of its value breakdown, the stock currently trades at 27.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 35.1X. On a trailing cash flow basis, the stock currently trades at 29.1X versus its peer group's average of 13.3X. 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, Viav Solutions 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 Viav Solutions fits the bill. Thus, it seems as though Viav Solutions shares could have a bit more room to run in the near term.

How Does VIAV Stack Up to the Competition?

Shares of VIAV 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 Ooma, Inc. (OOMA Quick QuoteOOMA - Free Report) . OOMA has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.

Earnings were strong last quarter. Ooma, Inc. beat our consensus estimate by 22.73%, and for the current fiscal year, OOMA is expected to post earnings of $1.06 per share on revenue of $268.07 million.

Shares of Ooma, Inc. have gained 5.4% over the past month, and currently trade at a forward P/E of 14.18X and a P/CF of 25.98X.

The Communication - Components industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VIAV and OOMA, even beyond their own solid fundamental situation.