Transcat, Inc. (TRNS) Moves 9.1% Higher: Will This Strength Last?
Transcat, Inc. (TRNS) shares soared 9.1% in the last trading session to close at $109.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.9% gain over the past four weeks.
Transcat is likely to benefit from healthy demand trends within the services segment, complemented by its recent acquisitions and strong performance from the low-margin distribution segment driven by a robust equipment rental program. The holistic growth model is expected to buoy margins backed by solid business mix and higher efficiency, resulting in improved operating leverage in the business.
This company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +19.4%. Revenues are expected to be $61.74 million, up 9.4% 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 Transcat, Inc., the consensus EPS estimate for the quarter has been revised 6.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TRNS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Transcat, Inc. is a member of the Zacks Instruments - Control industry. One other stock in the same industry, Sensata (ST), finished the last trading session 1% higher at $38.39. ST has returned -7.6% over the past month.
For Sensata , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.90. This represents a change of +5.9% from what the company reported a year ago. Sensata currently has a Zacks Rank of #4 (Sell).
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