Chart Industries (GTLS) Moves 10.1% Higher: Will This Strength Last?
Chart Industries, Inc. (GTLS) shares soared 10.1% in the last trading session to close at $161.33. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 25.8% gain over the past four weeks.
Chart Industries’ rally is primarily driven by optimism regarding the company’s receipt of additional limited notice to proceed (“LNTP”) for Cheniere Corpus Christi Stage III liquefied natural gas export terminal project. It is worth noting that Chart Industries secured an order worth $47.5 million from Bechtel for the project.
This equipment maker for the energy sector is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -9.5%. Revenues are expected to be $364.66 million, up 26.4% 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 Chart Industries, the consensus EPS estimate for the quarter has been revised 28.3% 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 GTLS 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 >>>>
Chart Industries is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Luxfer (LXFR), finished the last trading session 1.4% lower at $19.46. LXFR has returned 20.6% over the past month.
Luxfer's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.32. Compared to the company's year-ago EPS, this represents a change of -18%. Luxfer currently boasts a Zacks Rank of #3 (Hold).
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