Imperial Oil Limited (IMO) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Imperial Oil (IMO)? Shares have been on the move with the stock up 11.5% over the past month. The stock hit a new 52-week high of $131.67 in the previous session. Imperial Oil has gained 51.5% since the start of the year compared to the 34.3% gain for the Zacks Oils-Energy sector and the 53.4% return for the Zacks Oil and Gas - Integrated - Canadian 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 January 30, 2026, Imperial Oil reported EPS of $1.41 versus consensus estimate of $1.36.

For the current fiscal year, Imperial Oil is expected to post earnings of $5.2 per share on $37.09 in revenues. This represents a -14.75% change in EPS on a 10.13% change in revenues. For the next fiscal year, the company is expected to earn $5.59 per share on $35.96 in revenues. This represents a year-over-year change of 7.55% and -3.03%, respectively.

Valuation Metrics

Though Imperial Oil has recently hit a 52-week high, what is next for Imperial Oil? 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. 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.

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

In terms of its value breakdown, the stock currently trades at 25.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.5X. On a trailing cash flow basis, the stock currently trades at 12.8X versus its peer group's average of 10.9X. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Imperial Oil 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 Imperial Oil passes the test. Thus, it seems as though Imperial Oil shares could still be poised for more gains ahead.

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Imperial Oil Limited (IMO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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