Beacon Roofing Supply (BECN) shares ended the last trading session 5.6% higher at $54.89. 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 7.1% loss over the past four weeks.
The company has been gaining from strategic initiatives and successful execution of technology initiatives in the growing e-commerce platform. It remains on track with the long-term target of generating $1 billion in annual digital sales.
This roofing materials distributor is expected to post quarterly earnings of $2.13 per share in its upcoming report, which represents a year-over-year change of +39.2%. Revenues are expected to be $2.34 billion, up 24.8% 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 Beacon Roofing, 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 BECN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Beacon Roofing belongs to the Zacks Building Products - Retail industry. Another stock from the same industry, Builders FirstSource (BLDR), closed the last trading session 7.7% higher at $58.46. Over the past month, BLDR has returned -9.3%.
Builders FirstSource's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.42. Compared to the company's year-ago EPS, this represents a change of +0.9%. Builders FirstSource currently boasts a Zacks Rank of #3 (Hold).
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