Kaman (KAMN) Soars 100.9%: Is Further Upside Left in the Stock?
Kaman (KAMN) shares ended the last trading session 100.9% higher at $45.05. 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 6.4% loss over the past four weeks.
The latest uptick in the share price of Kaman can be attributed to the fact that the company has recently signed an agreement to get acquired by Arcline Investment Management, for a total enterprise value of approximately $1.8 billion.
This industrial distribution aircraft components company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -64.3%. Revenues are expected to be $194.9 million, down 1.1% 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 Kaman, 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 KAMN 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 >>>>
Kaman is part of the Zacks Aerospace - Defense Equipment industry. Astronics Corporation (ATRO), another stock in the same industry, closed the last trading session 2.6% higher at $16.87. ATRO has returned -2.1% in the past month.
Astronics Corporation'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 +157.1%. Astronics Corporation currently boasts a Zacks Rank of #3 (Hold).
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