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Quanex Building Products Corporation (NX) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been Quanex Building Products (NX - Free Report) . Shares have been marching higher, with the stock up 4.3% over the past month. The stock hit a new 52-week high of $23.23 in the previous session. Quanex has gained 49.1% since the start of the year compared to the 3.4% gain for the Zacks Construction sector and the -2.1% return for the Zacks Building Products - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 3, 2026, Quanex reported EPS of $0.79 versus consensus estimate of $0.68 while it beat the consensus revenue estimate by 0.77%.
For the current fiscal year, Quanex is expected to post earnings of $1.77 per share on $1.86 in revenues. This represents a -23.04% change in EPS on a 1.27% change in revenues. For the next fiscal year, the company is expected to earn $2.25 per share on $1.91 in revenues. This represents a year-over-year change of 27.12% and 2.4%, respectively.
Valuation Metrics
Though Quanex has recently hit a 52-week high, what is next for Quanex? 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.
Quanex has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 13X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.9X. On a trailing cash flow basis, the stock currently trades at 2.1X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 0.93. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Quanex 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, Quanex 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 Quanex fits the bill. Thus, it seems as though Quanex shares could still be poised for more gains ahead.
View the Zacks #1 Rank List
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Quanex Building Products Corporation (NX) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been Quanex Building Products (NX - Free Report) . Shares have been marching higher, with the stock up 4.3% over the past month. The stock hit a new 52-week high of $23.23 in the previous session. Quanex has gained 49.1% since the start of the year compared to the 3.4% gain for the Zacks Construction sector and the -2.1% return for the Zacks Building Products - Miscellaneous industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 3, 2026, Quanex reported EPS of $0.79 versus consensus estimate of $0.68 while it beat the consensus revenue estimate by 0.77%.
For the current fiscal year, Quanex is expected to post earnings of $1.77 per share on $1.86 in revenues. This represents a -23.04% change in EPS on a 1.27% change in revenues. For the next fiscal year, the company is expected to earn $2.25 per share on $1.91 in revenues. This represents a year-over-year change of 27.12% and 2.4%, respectively.
Valuation Metrics
Though Quanex has recently hit a 52-week high, what is next for Quanex? 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.
Quanex has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 13X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.9X. On a trailing cash flow basis, the stock currently trades at 2.1X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 0.93. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Quanex 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, Quanex 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 Quanex fits the bill. Thus, it seems as though Quanex shares could still be poised for more gains ahead.