Yahoo Finance Valmont (VMI) Surges 3.4%: Is This an Indication of Further Gains?
Valmont Industries (VMI) shares ended the last trading session 3.4% higher at $264.81. 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 1.6% 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 $4.04 per share in its upcoming report, which represents a year-over-year change of -7.6%. Revenues are expected to be $1.05 billion, up 0.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Valmont, the consensus EPS estimate for the quarter has been revised 1.2% 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 #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Valmont is a member of the Zacks Steel - Pipe and Tube industry. One other stock in the same industry, Mueller Water Products (MWA), finished the last trading session 0.9% higher at $17.68. MWA has returned -9.1% over the past month.
Mueller Water Products' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. Compared to the company's year-ago EPS, this represents a change of +22.2%. Mueller Water Products currently boasts a Zacks Rank of #2 (Buy).
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Valmont Industries, Inc. (VMI) : Free Stock Analysis Report
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