Masco (MAS) shares ended the last trading session 6.5% higher at $48.86. 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 10.1% loss over the past four weeks.
The company has been gaining from solid brand portfolio and long-term prospect backed by a strong operating margin, expansion through cost productivity and volume leverage.
This maker of Behr paint, Delta faucets and other building products is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of +8.1%. Revenues are expected to be $2.27 billion, up 3% 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 Masco, 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 MAS 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 >>>>
Masco is part of the Zacks Building Products - Miscellaneous industry. Advanced Drainage Systems (WMS), another stock in the same industry, closed the last trading session 4.5% higher at $125.56. WMS has returned -12.5% in the past month.
For Advanced Drainage , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.88. This represents a change of +113.6% from what the company reported a year ago. Advanced Drainage currently has a Zacks Rank of #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Masco Corporation (MAS) : Free Stock Analysis Report
Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research