Toro (TTC) shares rallied 4.2% in the last trading session to close at $112.80. 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 1.8% gain over the past four weeks.
The company is gaining on expectations of increased consumer spending on home/lawn projects as the Toro spring sales event is on. Demand for turf equipment is high in spring season courtesy of customers spending more time and money at home post-pandemic, and strength in the housing market. Toro retailers are offering deals on Zero Turn Lawn Mowers and Walk Behind Lawn Mowers. Notably, the landscape contractor business has been witnessing strong retail demand for zero-turn riding mowers as the company’s channel partners work to replenish their field inventory levels. Also, sales of Flex-Force battery-powered products remains strong due to successful new product introductions and shipments of walk power mowers have been high, driven by continued strong channel and retail demand.
Price and Consensus
This landscaping, maintenance and irrigation equipment maker is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +32.6%. Revenues are expected to be $1.1 billion, up 18.2% 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 Toro, 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 TTC 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 >>>>
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