DMC Global (BOOM) Moves 5.1% Higher: Will This Strength Last?
DMC Global (BOOM) shares ended the last trading session 5.1% higher at $16.37. 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 9.8% loss over the past four weeks.
DMC Global’s shares gained since the news of its business DynaEnergetics introducing DS GravityTM 2.0. DynaEnergetics offers unique perforating solutions that improve well production, completion cost, and safety.
DS GravityTM 2.0 gun system is a length-optimized, industry’s first self-orienting gun system that offers improved perforation efficiency. It is designed to save time and produce more profitable wells.
The company can now offer its whole array of shaped charges, including the new orientated FracTune, which is intended exclusively for oriented perforating.
This diversified holding company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +44.8%. Revenues are expected to be $180.4 million, up 8.8% 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 DMC Global, 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 BOOM 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 >>>>
DMC Global is a member of the Zacks Industrial Services industry. One other stock in the same industry, TPI Composites (TPIC), finished the last trading session 10.2% lower at $9. TPIC has returned -12.8% over the past month.
For TPI Composites , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.41. This represents a change of +14.6% from what the company reported a year ago. TPI Composites currently has a Zacks Rank of #3 (Hold).
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