Strength Seen in Aspen Aerogels (ASPN): Can Its 17.2% Jump Turn into More Strength?
Aspen Aerogels (ASPN) shares soared 17.2% in the last trading session to close at $9.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 49.5% loss over the past four weeks.
Share price of Aspen Aerogels surged after the company said it would not proceed with the planned public offering of common stock.
This maker of insulation products is expected to post quarterly loss of $0.57 per share in its upcoming report, which represents a year-over-year change of -147.8%. Revenues are expected to be $38.64 million, up 22% 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 Aspen Aerogels, the consensus EPS estimate for the quarter has been revised 6.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ASPN 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 >>>>
Aspen Aerogels is part of the Zacks Building Products - Miscellaneous industry. Advanced Drainage Systems (WMS), another stock in the same industry, closed the last trading session 0.3% lower at $90.07. WMS has returned -18.5% in the past month.
For Advanced Drainage , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.09. This represents a change of +25.3% from what the company reported a year ago. Advanced Drainage currently has a Zacks Rank of #4 (Sell).
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