Strength Seen in Motorcar Parts (MPAA): Can Its 16.6% Jump Turn into More Strength?
Motorcar Parts (MPAA) shares soared 16.6% in the last trading session to close at $8.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.1% gain over the past four weeks.
MPAA shares experienced a significant surge in value yesterday following the announcement by Bison Capital Partners that they possess 2,183,333 shares in the automotive industry supplier, which accounts for a 10.09% ownership stake.
This maker of remanufactured vehicle alternators and starters is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -63.9%. Revenues are expected to be $172.2 million, up 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 Motorcar Parts, the consensus EPS estimate for the quarter has been revised 52.9% 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 MPAA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Motorcar Parts belongs to the Zacks Automotive - Replacement Parts industry. Another stock from the same industry, Dorman Products (DORM), closed the last trading session 2.2% higher at $77.96. Over the past month, DORM has returned -12.8%.
For Dorman Products , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.15. This represents a change of -10.9% from what the company reported a year ago. Dorman Products currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Motorcar Parts of America, Inc. (MPAA) : Free Stock Analysis Report
Dorman Products, Inc. (DORM) : Free Stock Analysis Report
