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Matson (MATX) Soars 6.1%: Is Further Upside Left in the Stock?

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Matson (MATX) shares rallied 6.1% in the last trading session to close at $114.88. 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 25.4% gain over the past four weeks.

Matson is gaining from the gradual uptick in economic activities in the United States.This is resulting in higher demand for MATX's services. Factors like increased goods consumption, inventory restocking, favorable supply and upbeat demand fundamentals in core markets are driving the company's logistics revenues. Meanwhile, strong demand for MATX’s China service is aiding the company's ocean transportation segment. Driven by these tailwinds shares of Matson have gained more than 27% so far in 2022.

This ocean transportation and logistics services company is expected to post quarterly earnings of $8.23 per share in its upcoming report, which represents a year-over-year change of +313.6%. Revenues are expected to be $1.19 billion, up 67.5% 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 Matson, the consensus EPS estimate for the quarter has been revised 41.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MATX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here >>>>

Matson is part of the Zacks Transportation - Services industry. Yellow Corporation (YELL), another stock in the same industry, closed the last trading session 4.7% lower at $7.15. YELL has returned -24.7% in the past month.

YRC's consensus EPS estimate for the upcoming report has changed +41.3% over the past month to -$0.27. Compared to the company's year-ago EPS, this represents a change of +78.6%. YRC currently boasts a Zacks Rank of #2 (Buy).


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