Timken (TKR) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Shares of Timken (TKR) have been strong performers lately, with the stock up 19.2% over the past month. The stock hit a new 52-week high of $127.81 in the previous session. Timken has gained 51.5% since the start of the year compared to the 19.4% gain for the Zacks Computer and Technology sector and the 49.9% return for the Zacks Electronics - Miscellaneous Products industry.
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 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 4.75% change in revenues. For the next fiscal year, the company is expected to earn $7.05 per share on $5 in revenues. This represents a year-over-year change of 15.03% and 4.24%, respectively.
Timken 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 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. 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.
Timken 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 B.
In terms of its value breakdown, the stock currently trades at 20.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 28.1X. On a trailing cash flow basis, the stock currently trades at 14.7X versus its peer group's average of 24.2X. Additionally, the stock has a PEG ratio of 1.53. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. 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 have potential in the weeks and months to come.
Shares of TKR 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 Alps Alpine Co Ltd. - Unsponsored ADR (APELY). APELY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Alps Alpine Co Ltd. - Unsponsored ADR beat our consensus estimate by 433.33%, and for the current fiscal year, APELY is expected to post earnings of $1.64 per share on revenue of $6.91 billion.
Shares of Alps Alpine Co Ltd. - Unsponsored ADR have gained 2.6% over the past month, and currently trade at a forward P/E of 17.09X and a P/CF of 9.55X.
The Electronics - Miscellaneous Products industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TKR and APELY, even beyond their own solid fundamental situation.
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