Distribution Solutions (DSGR) Surges 5.1%: Is This an Indication of Further Gains?
Distribution Solutions Group (DSGR) shares rallied 5.1% in the last trading session to close at $35.17. 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 8.3% gain over the past four weeks.
The positive response from investors can be correlated to the likely future benefits of the company’s strategic acquisition of Safety Supply Illinois LLC, DBA Emergent Safety Supply (ESS). The acquisition of ESS is likely to strengthen DSGR's position in the safety products market, enhance its product offering and technical expertise, drive revenue growth, and contribute to improved earnings, ultimately creating value for shareholders and stakeholders.
This industrial products and tools maker is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +7.7%. Revenues are expected to be $417 million, up 26.8% 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 Distribution Solutions, 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 DSGR 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 >>>>
Distribution Solutions is a member of the Zacks Technology Services industry. One other stock in the same industry, Jamf Holding (JAMF), finished the last trading session 3.9% higher at $20.21. JAMF has returned -0.9% over the past month.
Jamf Holding's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.12. Compared to the company's year-ago EPS, this represents a change of +100%. Jamf Holding currently boasts a Zacks Rank of #3 (Hold).
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