Shares of LCI (LCII) have been strong performers lately, with the stock up 14.1% over the past month. The stock hit a new 52-week high of $123 in the previous session. LCI has gained 17.8% since the start of the year compared to the 14.5% move for the Zacks Auto-Tires-Trucks sector and the -2.3% return for the Zacks Automotive – Original Equipment 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 October 30, 2025, LCI reported EPS of $1.97 versus consensus estimate of $1.46.
For the current fiscal year, LCI is expected to post earnings of $7.28 per share on $4.06 in revenues. This represents a 30% change in EPS on a 8.49% change in revenues. For the next fiscal year, the company is expected to earn $7.89 per share on $4.23 in revenues. This represents a year-over-year change of 8.45% and 4.14%, respectively.
LCI 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 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
LCI has a Value Score of A. The stock’s Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 16.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.6X. On a trailing cash flow basis, the stock currently trades at 11.5X versus its peer group’s average of 8.1X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making LCI an interesting choice for value investors.
We also need to consider the stock’s Zacks Rank, as this is even more important than the company’s VGM Score. Fortunately, LCI currently has a Zacks Rank of #1 (Strong 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 LCI meets the list of requirements. Thus, it seems as though LCI shares could still be poised for more gains ahead.
Shares of LCII 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 Magna International Inc. (MGA). MGA has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Magna International Inc. beat our consensus estimate by 7.26%, and for the current fiscal year, MGA is expected to post earnings of $5.99 per share on revenue of $41.61 billion.
Shares of Magna International Inc. have gained 12.9% over the past month, and currently trade at a forward P/E of 10.04X and a P/CF of 4.76X.
The Automotive – Original Equipment industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LCII and MGA, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).