Patrick Industries (PATK) Surges 5.7%: Is This an Indication of Further Gains?
Patrick Industries (PATK) shares rallied 5.7% in the last trading session to close at $98.96. 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 9.6% gain over the past four weeks.
The price surge can be attributed to the Federal Reserve's recent decision to maintain a steady interest level. The Federal Open Market Committee (FOMC) decided to maintain the interest rates at a 22-year high of 5.25-5.5%. The central bank also hinted at three interest rate cuts by the end of 2024. This is a relief for the housing and related industries.
This building products manufacturer is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of -23.6%. Revenues are expected to be $780 million, down 18.1% 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 Patrick Industries, 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 PATK 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 >>>>
Patrick Industries is a member of the Zacks Building Products - Mobile Homes and RV Builders industry. One other stock in the same industry, Skyline (SKY), finished the last trading session 2.7% higher at $73.95. SKY has returned 20.2% over the past month.
For Skyline , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.70. This represents a change of -51.4% from what the company reported a year ago. Skyline currently has a Zacks Rank of #4 (Sell).
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