Stantec (STN) hit a 52-week high of $105.03, outperforming its sector and industry with a 33.8% gain year-to-date, driven by positive earnings surprises; the company reported EPS of $0.81 versus a consensus of $0.79 in its last report. Current fiscal year earnings are projected to increase 19.5% to $3.86 per share on $4.76 billion in revenues, and the stock holds a Zacks Rank #1 (Strong Buy), suggesting potential for further gains despite trading at a premium to its peers.
Stantec Inc. (STN) has demonstrated significant market outperformance, recently achieving a new 52-week high of $105.03 and delivering a 33.8% year-to-date gain, substantially exceeding the -0.9% return of the Zacks Business Services sector and the -5.2% return of the Zacks Consulting Services industry. This robust performance is underpinned by a consistent track record of positive earnings surprises, with the company exceeding consensus estimates in each of the last four quarters; most recently, it reported an EPS of $0.81 against a $0.79 estimate on May 14, 2025. Looking ahead, Stantec is projected to achieve substantial growth, with current fiscal year earnings expected to reach $3.86 per share (a 19.5% increase) on revenues of $4.76 billion (an 11.07% increase), and further growth anticipated for the next fiscal year with EPS forecasted at $4.33 (a 12.26% increase) on revenues of $5.22 billion (a 9.71% increase). While the stock trades at a premium, with a current P/E of 27.2X versus the industry average of 20.5X and a P/CF of 19.9X compared to its peers' 17.4X, its Zacks Rank of #1 (Strong Buy) driven by rising earnings estimates, coupled with a Growth Score of B and VGM Score of B, suggests continued upside potential despite the current valuation levels.
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strongly positive
Sentiment Score
0.60
Ticker Sentiment
