Valmont (VMI) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not tr
Valmont Industries (VMI) shares ended the last trading session 4% higher at $399.57. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.3% loss over the past four weeks.
VMI's rally appears to be driven by the optimism over high demand in the utility market and continued global investment in the energy transition. The company is also expected to benefit from commercial strategies, enhanced operational efficiencies and strategic cost-saving measures.
This infrastructure equipment maker is expected to post quarterly earnings of $4.72 per share in its upcoming report, which represents a year-over-year change of +9.3%. Revenues are expected to be $996.93 million, up 2.9% 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 Valmont, the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on VMI 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 >>>>
Valmont is part of the Zacks Steel - Pipe and Tube industry. Tenaris S.A. (TS), another stock in the same industry, closed the last trading session 1.7% higher at $58.18. TS has returned 4.8% in the past month.
For Tenaris, the consensus EPS estimate for the upcoming report has changed +1.5% over the past month to $0.88. This represents a change of -6.4% from what the company reported a year ago. Tenaris 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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