Standard Motor Products Hits 52-Week High: Can the Momentum Continue?

Standard Motor Products (SMP) hit a 52-week high, up 8.7% in the past month. The stock has gained 18.1% YTD compared to the -13.1% move for the Zacks Auto-Tires-Trucks sector and -10.9% return for the Zacks Automotive - Replacement Parts industry. SMP has a great record of positive earnings surprises and a Zacks Rank of #2 (Buy). The stock trades at 10X current fiscal year EPS estimates, not in-line with the peer industry average of 13.6X, making it an interesting choice for value investors.

Standard Motor Products (SMP) has reached a new 52-week high, surging 8.7% in the past month. The stock has gained 18.1% year-to-date (YTD), outperforming the Zacks Auto-Tires-Trucks sector (-13.1%) and the Zacks Automotive - Replacement Parts industry (-10.9%). This robust performance can be attributed to the company's consistent record of positive earnings surprises and a strong Zacks Rank of #2 (Buy).

In its latest earnings report on August 5, 2025, SMP reported earnings per share (EPS) of $1.29, surpassing the Zacks Consensus Estimate of $0.97. This represents a 32.99% earnings surprise, marking the fourth consecutive quarter in which the company has beaten consensus estimates. Over the same period, SMP's revenues also exceeded expectations, reaching $493.85 million compared to the Zacks Consensus Estimate of $453.83 million. This consistent outperformance highlights SMP's strong financial health and operational efficiency.

Valuation metrics indicate that SMP is an attractive choice for value investors. The stock currently trades at 10X current fiscal year EPS estimates, which is below the peer industry average of 13.6X. Additionally, SMP's trailing cash flow basis is 7.7X, aligning with its peer group's average. These metrics suggest that SMP is undervalued relative to its peers, presenting a potential opportunity for investors.

Looking ahead, SMP's Zacks Rank of #2 (Buy) suggests that the stock is poised for further gains. However, the sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call. Investors should closely monitor the company's guidance and outlook for future earnings growth.

In conclusion, Standard Motor Products' strong performance, positive earnings surprises, and attractive valuation metrics make it an interesting choice for investors. While the stock's immediate price movement may be influenced by earnings call commentary, the long-term prospects appear promising.

References:
[1] https://stockinvest.us/stock/SMP
[2] https://www.nasdaq.com/articles/standard-motor-products-inc-smp-hit-52-week-high-can-run-continue
[3] https://finance.yahoo.com/news/standard-motor-products-smp-surpasses-134002663.html