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JBT (JBT) Moves 8.1% Higher: Will This Strength Last?

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John Bean (JBT - Free Report) shares rallied 8.1% in the last trading session to close at $115.53. 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 10.9% loss over the past four weeks.

John Bean’s share price have been gaining from upbeat order levels across its segments. Its focus on process optimization efforts, expected savings from Elevate plan and cost-cutting actions are aiding margins.

In first-quarter 2022, the company witnessed growth of 16% in orders and ended with a backlog of around $1.1 billion.  JBT’s FoodTech segment will gain from high demand for packaged food purchases, and the recovery in food service while AeroTech segment will benefit from increased infrastructure spending and pickup in passenger air travel in the current year. Both the segments are expected to register revenue growth of 15-18% and 18-22% respectively, in 2022.

This food processing and transportation services company is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $554.4 million, up 16.6% 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 JBT, 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 JBT 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 >>>>

JBT is a member of the Zacks Manufacturing - Thermal Products industry. One other stock in the same industry, Pentair plc (PNR - Free Report) , finished the last trading session 3.3% higher at $47.03. PNR has returned -9.5% over the past month.

For Pentair plc, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1. This represents a change of +19.1% from what the company reported a year ago. Pentair plc currently has a Zacks Rank of #3 (Hold).


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