Circor (CIR) Surges 5.2%: Is This an Indication of Further Gains?
Circor (CIR) shares rallied 5.2% in the last trading session to close at $56. 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 4.4% loss over the past four weeks.
Circor shares have jumped on the announcement that the company has received all regulatory approval for its pending merger agreement with KKR.
On Jun 29, 2023, the company announced that it had amended its definitive merger agreement with affiliates of investment funds managed by KKR, a leading global investment firm. KKR had made a revised offer of $56 per share in cash (higher than its previous bid of $51 per share). The stockholders of Circor had approved the transaction at a special meeting held on Aug 24, 2023.
This maker of valves and other engineered products is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -15.9%. Revenues are expected to be $215.2 million, up 10.2% 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 Circor, 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 CIR 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 >>>>
Circor is a member of the Zacks Metal Products - Procurement and Fabrication industry. One other stock in the same industry, Esab (ESAB), finished the last trading session 1.5% higher at $71. ESAB has returned -3.4% over the past month.
Esab's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.92. Compared to the company's year-ago EPS, this represents no change. Esab currently boasts a Zacks Rank of #1 (Strong Buy).
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