Lifetime Brands, Inc. (LCUT) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been Lifetime Brands (LCUT). Shares have been marching higher, with the stock up 5.7% over the past month. The stock hit a new 52-week high of $10.12 in the previous session. Lifetime Brands has gained 134.7% since the start of the year compared to the -7% gain for the Zacks Consumer Discretionary sector and the 15.2% return for the Zacks Consumer Products - Discretionary industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2026, Lifetime Brands reported EPS of $1.18 versus consensus estimate of -$0.2.
For the current fiscal year, Lifetime Brands is expected to post earnings of $1.39 per share on $673.81 in revenues. This represents a 71.6% change in EPS on a 3.99% change in revenues. For the next fiscal year, the company is expected to earn $1.01 per share on $693.61 in revenues. This represents a year-over-year change of -27.34% and 2.94%, respectively.
Valuation Metrics
Though Lifetime Brands has recently hit a 52-week high, what is next for Lifetime Brands? 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 these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Lifetime Brands has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 6.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.5X. On a trailing cash flow basis, the stock currently trades at 2.8X versus its peer group's average of 8X. Additionally, the stock has a PEG ratio of 0.48. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Lifetime Brands an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Lifetime Brands 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 Lifetime Brands passes the test. Thus, it seems as though Lifetime Brands shares could have a bit more room to run in the near term.
How Does LCUT Stack Up to the Competition?
Shares of LCUT 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 Barnes & Noble Education, Inc (BNED). BNED has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Barnes & Noble Education, Inc beat our consensus estimate by 42.86%, and for the current fiscal year, BNED is expected to post earnings of $0.71 per share on revenue of $1.82 billion.
Shares of Barnes & Noble Education, Inc have gained 2.3% over the past month, and currently trade at a forward P/E of 18.06X and a P/CF of 7.49X.
The Consumer Products - Discretionary industry may rank in the bottom 69% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for LCUT and BNED, even beyond their own solid fundamental situation.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Lifetime Brands, Inc. (LCUT) : Free Stock Analysis Report
Barnes & Noble Education, Inc (BNED) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
