Strength Seen in Alico (ALCO): Can Its 9.3% Jump Turn into More Strength?
Alico ALCO shares rallied 9.3% in the last trading session to close at $36.33. 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 2.3% gain over the past four weeks.
Alico remains encouraged that surge in global demand for not from concentrate orange juice witnessed at the onset of the pandemic has continued to remain robust. This has significantly aided market pricing for early and mid-season fruit in the current harvest season as compared to the prior year.
This agribusiness and land management company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of -28.8%. Revenues are expected to be $51.3 million, down 8.3% 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 Alico, 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 ALCO 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 >>>>
Alico belongs to the Zacks Agriculture - Operations industry. Another stock from the same industry, Archer Daniels Midland ADM, closed the last trading session 1.8% higher at $89.09. Over the past month, ADM has returned 14.1%.
ADM's consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $1.34. Compared to the company's year-ago EPS, this represents a change of -3.6%. ADM currently boasts a Zacks Rank of #1 (Strong Buy).
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