A strong stock as of late has been Montauk Renewables (MNTK Quick QuoteMNTK - Free Report) . Shares have been marching higher, with the stock up 32.3% over the past month. The stock hit a new 52-week high of $2.6 in the previous session. Montauk Renewables has gained 47.3% since the start of the year compared to the 35.3% gain for the Zacks Oils-Energy sector and the 5.3% return for the Zacks Alternative Energy - Other 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 August 5, 2026, Montauk Renewables reported EPS of $0 versus consensus estimate of -$0.02.

For the current fiscal year, Montauk Renewables is expected to post earnings of $0.12 per share on $213 in revenues. This represents a 1100% change in EPS on a 20.76% change in revenues. For the next fiscal year, the company is expected to earn $0.17 per share on $229.34 in revenues. This represents a year-over-year change of 41.67% and 7.67%, respectively.

Valuation Metrics

While Montauk Renewables has moved to its 52-week high over the past few weeks, 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 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Montauk Renewables has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 20.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.9X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 8.7X. 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, Montauk Renewables currently has a Zacks Rank of #1 (Strong 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 Montauk Renewables meets the list of requirements. Thus, it seems as though Montauk Renewables shares could have potential in the weeks and months to come.

How Does MNTK Stack Up to the Competition?

Shares of MNTK 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 Alvopetro Energy Ltd. (ALVOF Quick QuoteALVOF - Free Report) . ALVOF has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.

Earnings were strong last quarter. Alvopetro Energy Ltd. beat our consensus estimate by 18.18%, and for the current fiscal year, ALVOF is expected to post earnings of $0.89 per share on revenue of $73.5 million.

Shares of Alvopetro Energy Ltd. have gained 12.7% over the past month, and currently trade at a forward P/E of 8.98X and a P/CF of 8.14X.

The Alternative Energy - Other industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MNTK and ALVOF, even beyond their own solid fundamental situation.