Strength Seen in Evoqua Water (AQUA): Can Its 7.4% Jump Turn into More Strength?
Evoqua Water (AQUA) shares rallied 7.4% in the trading session on Monday to close at $35.18. 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 9.4% loss over the past four weeks.
The stock is benefiting from the company’s broad-based organic growth across all regions and most product lines.
This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +6.5%. Revenues are expected to be $464.3 million, up 9% 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 Evoqua Water, 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 AQUA 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 >>>>
Evoqua Water is a member of the Zacks Technology Services industry. One other stock in the same industry, Harsco (HSC), finished the last trading session 5.3% higher at $4.60. HSC has returned -13% over the past month.
For Harsco , the consensus EPS estimate for the upcoming report has changed -12.5% over the past month to -$0.04. This represents a change of -120% from what the company reported a year ago. Harsco currently has a Zacks Rank of #4 (Sell).
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