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Transcat (TRNS) Surges 7.6%: Is This an Indication of Further Gains?

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Transcat, Inc. (TRNS - Free Report) shares soared 7.6% in the last trading session to close at $81.14. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.2% loss over the past four weeks.

Transcat’s rally is largely driven by optimism over the company’s strong momentum in its service segment on solid demand for its accredited calibration, repair, inspection and laboratory instrument services. Strength across the company’s end markets and solid backlog level bode well for the company.

This company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $55.18 million, up 13.2% 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 Transcat, Inc., 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 TRNS 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 >>>>

Transcat, Inc. belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Woodward, Inc. (WWD - Free Report) , closed the last trading session 2% lower at $124.91. Over the past month, WWD has returned 2.7%.

For Woodward, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.86. This represents a change of -17.3% from what the company reported a year ago. Woodward currently has a Zacks Rank of #3 (Hold).


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