Commercial Vehicle Group (CVGI) shares soared 7.3% in the last trading session to close at $10.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% gain over the past four weeks.
Continued growth in the demand for Commercial Vehicle Group's warehouse automation products amid rising e-commerce penetration is driving the stock higher. The firm’s partnership with commercial electric vehicle producer Xos Inc. in a bid to drive innovative initiatives in growing markets has also buoyed investors’ optimism.
Price and Consensus
This supplier of products for heavy duty trucks is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +350%. Revenues are expected to be $217.21 million, up 16.1% 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 Commercial Vehicle Group, the consensus EPS estimate for the quarter has been revised 24.6% 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 CVGI 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 >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Commercial Vehicle Group, Inc. (CVGI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research