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Strattec Security Corporation (STRT) Hits Fresh High: Is There Still Room to Run?

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A strong stock as of late has been Strattec Security (STRT - Free Report) . Shares have been marching higher, with the stock up 21.8% over the past month. The stock hit a new 52-week high of $83.07 in the previous session. Strattec Security has gained 96.2% since the start of the year compared to the 14.8% move for the Zacks Auto-Tires-Trucks sector and the -2.2% return for the Zacks Automotive - Original Equipment 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 October 30, 2025, Strattec Security reported EPS of $2.22 versus consensus estimate of $1.48.

For the current fiscal year, Strattec Security is expected to post earnings of $5.24 per share on $559.91 in revenues. This represents a -2.6% change in EPS on a -0.91% change in revenues. For the next fiscal year, the company is expected to earn $5.79 per share on $571.11 in revenues. This represents a year-over-year change of 10.5% and 2%, respectively.

Valuation Metrics

Strattec Security 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 these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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.

Strattec Security has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 15.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.8X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 7.5X. Additionally, the stock has a PEG ratio of 1.54. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Strattec Security an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Strattec Security currently has a Zacks Rank of #1 (Strong 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 Strattec Security passes the test. Thus, it seems as though Strattec Security shares could have potential in the weeks and months to come.

How Does STRT Stack Up to the Competition?

Shares of STRT 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 OPENLANE, Inc. (KAR - Free Report) . KAR has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.

Earnings were strong last quarter. OPENLANE, Inc. beat our consensus estimate by 16.67%, and for the current fiscal year, KAR is expected to post earnings of $1.37 per share on revenue of $1.92 billion.

Shares of OPENLANE, Inc. have gained 11.6% over the past month, and currently trade at a forward P/E of 22.74X and a P/CF of 13.48X.

The Automotive - Original Equipment industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for STRT and KAR, even beyond their own solid fundamental situation.


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