Back to top

Image: Bigstock

DHI Group, Inc. (DHX) Hits Fresh High: Is There Still Room to Run?

Read MoreHide Full Article

Shares of DHI Group (DHX - Free Report) have been strong performers lately, with the stock up 30.3% over the past month. The stock hit a new 52-week high of $4.1 in the previous session. DHI Group has gained 149.7% since the start of the year compared to the 16% move for the Zacks Computer and Technology sector and the -17.2% return for the Zacks Internet - Content 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 May 5, 2026, DHI Group reported EPS of $0.08 versus consensus estimate of $0.04.

For the current fiscal year, DHI Group is expected to post earnings of $0.32 per share on $125.24 in revenues. This represents a 10.34% change in EPS on a -2.03% change in revenues. For the next fiscal year, the company is expected to earn $0.34 per share on $127.4 in revenues. This represents a year-over-year change of 4.69% and 1.73%, respectively.

Valuation Metrics

DHI Group 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.

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

In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15X. On a trailing cash flow basis, the stock currently trades at 5.7X versus its peer group's average of 8.1X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making DHI Group 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, DHI Group 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 DHI Group passes the test. Thus, it seems as though DHI Group shares could have a bit more room to run in the near term.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in