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Strength Seen in The Manitowoc Company, Inc. (MTW): Can Its 8.2% Jump Turn into More Strength?

The Manitowoc Company, Inc. (MTW) shares rallied 8.2% in the last trading session to close at $12.31. 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 21.5% gain over the past four weeks.

Manitowoc’s shares have gained since it launched the Potain MCT 1005 M50 – the largest topless tower crane to be manufactured at its Zhangjiagang facility in China. The model comes six months after the introduction of the Potain MCT 805, which was previously the largest Potain crane built in China.

Designed for use in emerging markets and Southeast Asia, and with a huge 50 tons capacity, the Potain MCT 1005 M50 crane is available with a choice of three counterjib options that will further enhance its seamless integration into confined jobsites. Topless tower cranes are fast gaining popularity as they are being considered ideal for large infrastructure projects or modular developments and a host of other applications.

This company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -14.8%. Revenues are expected to be $562.36 million, up 13% 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 The Manitowoc Company, Inc., 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 MTW 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 >>>>

The Manitowoc Company, Inc. is a member of the Zacks Manufacturing - Construction and Mining industry. One other stock in the same industry, Astec Industries (ASTE), finished the last trading session 0.2% lower at $38.52. ASTE has returned -7% over the past month.

For Astec Industries , the consensus EPS estimate for the upcoming report has changed -4.1% over the past month to $0.38. This represents a change of +1366.7% from what the company reported a year ago. Astec Industries currently has a Zacks Rank of #4 (Sell).

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