EuroDry (EDRY) Moves 5.5% Higher: Will This Strength Last?
EuroDry (EDRY) shares soared 5.5% in the last trading session to close at $39.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 26.8% gain over the past four weeks.
The upside was mainly owing to EuroDry's acquisition of M/V Santa Cruz, a Panamax, drybulk carrier. With market sentiments highly favorable, this purchase aimed at expanding its fleet is a prudent move by the company. Bullishness surrounding the dry bulk market is a huge boon for EuroDry .Increased fleet utilization with the gradual resumption of economic activities and an uptick in world trade have aided the shipping stock. EDRY shares have surged 109.5% year to date.
This company is expected to post quarterly earnings of $3.40 per share in its upcoming report, which represents a year-over-year change of +518.2%. Revenues are expected to be $19.52 million, up 127.8% 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 EuroDry, 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 EDRY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
EuroDry belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Kirby (KEX), closed the last trading session 1% higher at $68.74. Over the past month, KEX has returned -5.1%.
Kirby's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. Compared to the company's year-ago EPS, this represents a change of +583.3%. Kirby currently boasts a Zacks Rank of #3 (Hold).
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