Alerus Financial (ALRS) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Alerus (ALRS). Shares have been marching higher, with the stock up 6.6% over the past month. The stock hit a new 52-week high of $30.85 in the previous session. Alerus has gained 35.9% since the start of the year compared to the 3.2% gain for the Zacks Finance sector and the -9.7% return for the Zacks Financial - Miscellaneous Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2026, Alerus reported EPS of $0.89 versus consensus estimate of $0.58.For the current fiscal year, Alerus is expected to post earnings of $3.02 per share on $306.2 in revenues. This represents a 8.63% change in EPS on a 3.84% change in revenues. For the next fiscal year, the company is expected to earn $2.8 per share on $317.6 in revenues. This represents a year-over-year change of -7.12% and 3.72%, respectively.Valuation MetricsAlerus 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 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Alerus has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 10.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11X. On a trailing cash flow basis, the stock currently trades at 8.7X versus its peer group's average of 9.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Alerus currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.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 Alerus meets the list of requirements. Thus, it seems as though Alerus shares could still be poised for more gains ahead.How Does ALRS Stack Up to the Competition?Shares of ALRS 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 Atlanticus Holdings Corporation (ATLC). ATLC has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.Earnings were strong last quarter. Atlanticus Holdings Corporation beat our consensus estimate by 29.65%, and for the current fiscal year, ATLC is expected to post earnings of $9.48 per share on revenue of $3.04 billion.Shares of Atlanticus Holdings Corporation have gained 16.2% over the past month, and currently trade at a forward P/E of 11.03X and a P/CF of 10.16X.The Financial - Miscellaneous Services industry is in the top 42% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ALRS and ATLC, even beyond their own solid fundamental situation.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks