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Itron (ITRI) Moves 5.3% Higher: Will This Strength Last?

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Itron (ITRI) shares rallied 5.3% in the last trading session to close at $46.14. 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 13.6% loss over the past four weeks.

The increase in share price is attributed to improving growth prospects for Itron as customer spending environment remains healthy. Utilities are working on overhauling the aging infrastructure thereby providing ample business opportunities for Itron. The company is focused on improving factory utilisation and is undertaking several price-cost actions to manage costs. The company’s strategic investments and expanding footprint in the connected devices space hold promise.

Also, sale of its non-communicating mechanical gas business bodes well as the company focuses on moving towards an asset light model.

This energy and water meter company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -21.4%. Revenues are expected to be $494.37 million, up 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 Itron, 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 ITRI 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 >>>>

Itron belongs to the Zacks Electronics - Testing Equipment industry. Another stock from the same industry, Ametek (AME), closed the last trading session 1% lower at $107.14. Over the past month, AME has returned -7.3%.

Ametek's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.29. Compared to the company's year-ago EPS, this represents a change of +12.2%. Ametek currently boasts a Zacks Rank of #3 (Hold).

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