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Wabash (WNC) Soars 8.9%: Is Further Upside Left in the Stock?

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Wabash National (WNC) shares rallied 8.9% in the last trading session to close at $13.96. 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 15% loss over the past four weeks.

Wabash’s rally seems to reflect investors’ optimism over the company’s strategic growth initiatives target solutions for three key areas namely—cold chain, parts and services, and ecommerce and logistics disruption. WNC’s refreshed strategy and growth efforts are anticipated to generate revenues and EPS of approximately $3 billion and $3.50, respectively, by 2025.

This maker of truck trailers is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +123.8%. Revenues are expected to be $613 million, up 36.4% 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 Wabash, 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 WNC 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 >>>>

Wabash is a member of the Zacks Automotive - Original Equipment industry. One other stock in the same industry, Arcimoto, Inc. (FUV), finished the last trading session 6.9% lower at $3.50. FUV has returned -6% over the past month.

For Arcimoto, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.33. This represents a change of -43.5% from what the company reported a year ago. Arcimoto, Inc. currently has a Zacks Rank of #3 (Hold).

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