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Timken Company (The) (TKR) Hits Fresh High: Is There Still Room to Run?
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A strong stock as of late has been Timken (TKR - Free Report) . Shares have been marching higher, with the stock up 23.4% over the past month. The stock hit a new 52-week high of $142.92 in the previous session. Timken has gained 65.4% since the start of the year compared to the 20.2% gain for the Zacks Computer and Technology sector and the 75.8% return for the Zacks Electronics - Miscellaneous Products 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 May 6, 2026, Timken reported EPS of $1.67 versus consensus estimate of $1.5.
For the current fiscal year, Timken is expected to post earnings of $6.13 per share on $4.8 in revenues. This represents a 15.01% change in EPS on a 4.73% change in revenues. For the next fiscal year, the company is expected to earn $7.14 per share on $5.01 in revenues. This represents a year-over-year change of 16.54% and 4.43%, respectively.
Valuation Metrics
While Timken 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 they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Timken has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 30X. On a trailing cash flow basis, the stock currently trades at 16X versus its peer group's average of 21.4X. Additionally, the stock has a PEG ratio of 1.67. 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, Timken 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 Timken meets the list of requirements. Thus, it seems as though Timken shares could still be poised for more gains ahead.
View the Zacks #1 Rank List
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Timken Company (The) (TKR) Hits Fresh High: Is There Still Room to Run?
A strong stock as of late has been Timken (TKR - Free Report) . Shares have been marching higher, with the stock up 23.4% over the past month. The stock hit a new 52-week high of $142.92 in the previous session. Timken has gained 65.4% since the start of the year compared to the 20.2% gain for the Zacks Computer and Technology sector and the 75.8% return for the Zacks Electronics - Miscellaneous Products 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 May 6, 2026, Timken reported EPS of $1.67 versus consensus estimate of $1.5.
For the current fiscal year, Timken is expected to post earnings of $6.13 per share on $4.8 in revenues. This represents a 15.01% change in EPS on a 4.73% change in revenues. For the next fiscal year, the company is expected to earn $7.14 per share on $5.01 in revenues. This represents a year-over-year change of 16.54% and 4.43%, respectively.
Valuation Metrics
While Timken 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 they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Timken has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 30X. On a trailing cash flow basis, the stock currently trades at 16X versus its peer group's average of 21.4X. Additionally, the stock has a PEG ratio of 1.67. 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, Timken 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 Timken meets the list of requirements. Thus, it seems as though Timken shares could still be poised for more gains ahead.