Perimeter Solutions, SA (PRM) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help
Perimeter Solutions, SA (PRM) shares rallied 14.8% in the last trading session to close at $24.42. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.5% loss over the past four weeks.
PRM’s shares rallied after UBS reportedly upgraded it to “Buy” from “Neutral” and raised its price target to $30 from $26.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $109.61 million, up 52.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Perimeter Solutions, SA, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PRM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Perimeter Solutions, SA is part of the Zacks Chemical - Specialty industry. International Flavors (IFF), another stock in the same industry, closed the last trading session 2.2% higher at $72.55. IFF has returned -12.1% in the past month.
For International Flavors, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.1. This represents a change of -8.3% from what the company reported a year ago. International Flavors currently has a Zacks Rank of #3 (Hold).
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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