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First Advantage Corporation (FA) Hit a 52 Week High, Can the Run Continue?
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Shares of First Advantage (FA - Free Report) have been strong performers lately, with the stock up 18% over the past month. The stock hit a new 52-week high of $19.02 in the previous session. First Advantage has gained 30% since the start of the year compared to the 16.8% gain for the Zacks Computer and Technology sector and the -8.1% return for the Zacks Internet - Software 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 7, 2026, First Advantage reported EPS of $0.26 versus consensus estimate of $0.21 while it beat the consensus revenue estimate by 3.03%.
For the current fiscal year, First Advantage is expected to post earnings of $1.23 per share on $1.68 in revenues. This represents a 18.27% change in EPS on a 6.41% change in revenues. For the next fiscal year, the company is expected to earn $1.44 per share on $1.79 in revenues. This represents a year-over-year change of 17.07% and 6.83%, respectively.
Valuation Metrics
First Advantage 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 they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
First Advantage has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.5X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 18.7X. 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 is even more important than the company's VGM Score. Fortunately, First Advantage currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 First Advantage fits the bill. Thus, it seems as though First Advantage shares could have potential in the weeks and months to come.
How Does FA Stack Up to the Competition?
Shares of FA 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 PagerDuty (PD - Free Report) . PD has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. PagerDuty beat our consensus estimate by 33.33%, and for the current fiscal year, PD is expected to post earnings of $1.30 per share on revenue of $493.04 million.
Shares of PagerDuty have gained 7.9% over the past month, and currently trade at a forward P/E of 7.72X and a P/CF of 13.34X.
The Internet - Software industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FA and PD, even beyond their own solid fundamental situation.
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First Advantage Corporation (FA) Hit a 52 Week High, Can the Run Continue?
Shares of First Advantage (FA - Free Report) have been strong performers lately, with the stock up 18% over the past month. The stock hit a new 52-week high of $19.02 in the previous session. First Advantage has gained 30% since the start of the year compared to the 16.8% gain for the Zacks Computer and Technology sector and the -8.1% return for the Zacks Internet - Software 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 7, 2026, First Advantage reported EPS of $0.26 versus consensus estimate of $0.21 while it beat the consensus revenue estimate by 3.03%.
For the current fiscal year, First Advantage is expected to post earnings of $1.23 per share on $1.68 in revenues. This represents a 18.27% change in EPS on a 6.41% change in revenues. For the next fiscal year, the company is expected to earn $1.44 per share on $1.79 in revenues. This represents a year-over-year change of 17.07% and 6.83%, respectively.
Valuation Metrics
First Advantage 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 they provide investors with an additional way to sort 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
First Advantage has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.5X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 18.7X. 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 is even more important than the company's VGM Score. Fortunately, First Advantage currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 First Advantage fits the bill. Thus, it seems as though First Advantage shares could have potential in the weeks and months to come.
How Does FA Stack Up to the Competition?
Shares of FA 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 PagerDuty (PD - Free Report) . PD has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. PagerDuty beat our consensus estimate by 33.33%, and for the current fiscal year, PD is expected to post earnings of $1.30 per share on revenue of $493.04 million.
Shares of PagerDuty have gained 7.9% over the past month, and currently trade at a forward P/E of 7.72X and a P/CF of 13.34X.
The Internet - Software industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FA and PD, even beyond their own solid fundamental situation.