Have you been paying attention to shares of Alithya Group (ALYAF)? Shares have been on the move with the stock up 4.4% over the past month. The stock hit a new 52-week high of $1.91 in the previous session. Alithya has gained 82.6% since the start of the year compared to the 2.2% move for the Zacks Business Services sector and the 13.3% return for the Zacks Technology Services industry.

What's Driving the Outperformance?

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 June 12, 2025, Alithya reported EPS of $0.08 versus consensus estimate of $0.03.

For the current fiscal year, Alithya is expected to post earnings of $0.21 per share on $363.01 in revenues. This represents a 0% change in EPS on a 6.73% change in revenues. For the next fiscal year, the company is expected to earn $0.28 per share on $381.28 in revenues. This represents a year-over-year change of 33.33% and 5.03%, respectively.

Valuation Metrics

Alithya 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). 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.

Alithya has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 9.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.3X. On a trailing cash flow basis, the stock currently trades at 4.3X versus its peer group's average of 12.9X. Additionally, the stock has a PEG ratio of 0.65. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Alithya an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Alithya currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Story Continues

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 Alithya passes the test. Thus, it seems as though Alithya shares could still be poised for more gains ahead.

How Does ALYAF Stack Up to the Competition?

Shares of ALYAF 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 Coherent Corp. (COHR). COHR has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of C, and a Momentum Score of A.

Earnings were strong last quarter. Coherent Corp. beat our consensus estimate by 5.81%, and for the current fiscal year, COHR is expected to post earnings of $4.47 per share on revenue of $5.79 billion.

Shares of Coherent Corp. have gained 15% over the past month, and currently trade at a forward P/E of 22.01X and a P/CF of 17.51X.

The Technology Services industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ALYAF and COHR, even beyond their own solid fundamental situation.

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Alithya Group Inc. (ALYAF):Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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