Have you been paying attention to shares of Post Holdings (POST)? Shares have been on the move with the stock up 15.1% over the past month. The stock hit a new 52-week high of $106.62 in the previous session. Post Holdings has gained 20.9% since the start of the year compared to the 1.3% move for the Zacks Consumer Staples sector and the 1.5% return for the Zacks Food - Miscellaneous 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 February 1, 2024, Post Holdings reported EPS of $1.69 versus consensus estimate of $1.07.

For the current fiscal year, Post Holdings is expected to post earnings of $5.52 per share on $8.09 billion in revenues. This represents a 3.37% change in EPS on a 15.71% change in revenues. For the next fiscal year, the company is expected to earn $6.21 per share on $8.24 billion in revenues. This represents a year-over-year change of 12.46% and 1.81%, respectively.

Valuation Metrics

Post Holdings 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 these give investors a variety of ways to comb 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. 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.

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

In terms of its value breakdown, the stock currently trades at 19.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.1X. On a trailing cash flow basis, the stock currently trades at 8.1X versus its peer group's average of 11.1X. 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 supersedes any trend on the style score front. Fortunately, Post Holdings currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.