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Hayward Holdings, Inc. (HAYW) Soars 8.0%: Is Further Upside Left in the Stock?

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Hayward Holdings, Inc. (HAYW - Free Report) shares ended the last trading session 8% higher at $14.48. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% loss over the past four weeks.

The upswing in Hayward’s share price reflects positive health of the pool industry, particularly the strength of the ever-increasing aftermarket, which represents approximately 80% of the business. The company’s inclusion into the S&P SmallCap 600 also bodes well for investors.

This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $211.37 million, down 13.8% 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 Hayward Holdings, 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 HAYW 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 >>>>

Hayward Holdings, Inc. belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Universal Electronics (UEIC - Free Report) , closed the last trading session 2.7% higher at $8.88. Over the past month, UEIC has returned -2.3%.

For Universal Electronics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. This represents a change of -92% from what the company reported a year ago. Universal Electronics currently has a Zacks Rank of #4 (Sell).


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