Momentum Stock Alert: Valmont Industries (VMI)

Valmont Industries (VMI) is a momentum stock with a B momentum style score and A VGM score, holding a Zacks Rank #3 (Hold) rating. The stock has seen price changes of -3.3% over the past week and +1.8% over the past four weeks, with a one-year gain of 28.4%. Earnings estimates have increased for fiscal 2025, with a $0.51 per share increase to $18.63. VMI has an average earnings surprise of 3.5%.

Valmont Industries (VMI) has recently exhibited mixed signals in its stock performance and financial indicators. The company's stock has seen a one-year gain of 28.4%, with earnings estimates increasing for fiscal 2025 by $0.51 per share to $18.63. However, the stock has experienced a -3.3% price change over the past week and a +1.8% gain over the past four weeks. Additionally, the company holds a Zacks Rank #3 (Hold) rating, despite having a B momentum style score and an A VGM score.

Valmont Industries has been showing strong revenue growth, with Q2 2025 net sales of $1.05 billion, up 1% year-over-year. The company's adjusted operating margin dipped 70 basis points year-over-year to 13.5%, primarily due to weaker profitability in its international infrastructure business [1]. However, the company expects restructuring and exit from unprofitable solar operations to deliver $22 million in annual savings starting in 2026, which should help improve margins.

The stock is currently trading at 19.39x FY25 consensus EPS estimates of 18.64 and 17.47x FY26 consensus EPS estimates of $20.69. While the stock's valuation is almost in line with its historical average, the current discount on FY26 consensus estimates presents an attractive opportunity, given the company's strong growth prospects and margin expansion [1].

Valmont Industries has experienced a significant bullish signal on its 15-minute chart, indicating a potential shift in momentum towards the upside. The chart triggered a KDJ Golden Cross and Bullish Marubozu pattern at 08:15 on August 15, 2025, suggesting that the stock price is likely to continue its upward trend with buyers dominating the market [1].

However, the company's recent earnings report showed mixed results. Valmont reported a second-quarter 2025 profit of $97.2 million or $4.88 per share, beating the Zacks Consensus Estimate of $4.72. The company’s revenues were $1,050.5 million in the quarter, up 1% year over year, also outpacing the Zacks Consensus Estimate of $1,038.8 million [2]. Despite the positive earnings, the company's operating cash flows and share repurchases were lower than expected.

Investors should closely monitor Valmont Industries' stock performance and consider the implications of these technical indicators. While the company has shown strong revenue growth, the recent bullish signals indicate a potential shift in market sentiment that could impact stock price. The company's earnings estimates have been trending upward, with a Zacks Rank #2 (Buy) rating, but the mixed signals in its stock performance and financial indicators suggest a cautious approach for investors.

References:
[1] https://www.ainvest.com/news/valmont-industries-15min-chart-signals-bullish-trend-kdj-golden-cross-bullish-marubozu-2508-8/
[2] https://www.nasdaq.com/articles/why-valmont-vmi-16-last-earnings-report