Strength Seen in Shoals Technologies (SHLS): Can Its 5.3% Jump Turn into More Strength?
Shoals Technologies Group (SHLS) shares ended the last trading session 5.3% higher at $17.62. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 24.2% loss over the past four weeks.
Per a media source, Goldman Sachs analysts led by Brian Lee have recently upgraded shares of Shoals Technologies from Neutral to Buy and also raised their earnings and revenue estimates for the company. This must have boosted investors’ confidence in this stock, thereby resulting in the latest uptick in SHLS’ share price.
This solar energy equipment supplier is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +60%. Revenues are expected to be $136.65 million, up 50.5% 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 Shoals Technologies, the consensus EPS estimate for the quarter has been revised 0.7% 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 SHLS 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 >>>>
Shoals Technologies is part of the Zacks Solar industry. FTC Solar (FTCI), another stock in the same industry, closed the last trading session 4.1% lower at $1.39. FTCI has returned -4.6% in the past month.
For FTC Solar , the consensus EPS estimate for the upcoming report has changed -10% over the past month to -$0.06. This represents a change of +64.7% from what the company reported a year ago. FTC Solar currently has a Zacks Rank of #4 (Sell).
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