Shares of Cactus, Inc. (WHD) have been strong performers lately, with the stock up 28.9% over the past month. The stock hit a new 52-week high of $65.19 in the previous session. Cactus has gained 42.3% since the start of the year compared to the 28% gain for the Zacks Oils-Energy sector and the 29% return for the Zacks Oil and Gas - Integrated - United States 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 July 29, 2026, Cactus reported EPS of $0.93 versus consensus estimate of $0.71.

For the current fiscal year, Cactus is expected to post earnings of $2.92 per share on $1.6 in revenues. This represents a 8.55% change in EPS on a 48.45% change in revenues. For the next fiscal year, the company is expected to earn $3.65 per share on $1.72 in revenues. This represents a year-over-year change of 25% and 7.68%, respectively.

Valuation Metrics

Though Cactus has recently hit a 52-week high, what is next for Cactus? 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). 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.

Cactus has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 22.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 18.5X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 2.45. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Cactus currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

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

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Cactus, Inc. (WHD): Free Stock Analysis Report

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

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