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Strength Seen in Beam Global (BEEM): Can Its 11.0% Jump Turn into More Strength?

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Beam Global (BEEM - Free Report) shares soared 11% in the last trading session to close at $16.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.1% loss over the past four weeks.

Shares of Beam Global rose yesterday after the company announced that it secured a credit facility of $100 million. The credit facility has improved the financial flexibility of the firm, which is required at this growth stage of the company. The EV charging provider will be using the funds to provide necessary working capital to support its product orders and deliveries.

This company is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of -95.5%. Revenues are expected to be $7.42 million, up 112.6% 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 Beam Global, 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 BEEM 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 >>>>

Beam Global is a member of the Zacks Automotive - Original Equipment industry. One other stock in the same industry, Hyliion Holdings Corp. (HYLN - Free Report) , finished the last trading session 0.9% higher at $2.19. HYLN has returned -25.9% over the past month.

Hyliion Holdings Corp.'s consensus EPS estimate for the upcoming report has changed +20.5% over the past month to -$0.18. Compared to the company's year-ago EPS, this represents a change of -12.5%. Hyliion Holdings Corp. currently boasts a Zacks Rank of #2 (Buy).


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