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SUZUKI MOTOR CP (SZKMY) Surges 3.2%: Is This an Indication of Further Gains?

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SUZUKI MOTOR CP (SZKMY - Free Report) shares ended the last trading session 3.2% higher at $181.16. 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 9.9% loss over the past four weeks.

Maruti Suzuki India (Maruti Suzuki), a subsidiary of SUZUKI MOTOR CP, released its sales figures for the month of February 2021 during yesterday’s trading hours.

For SUZUKI MOTOR CP, India is a crucial production and export hub of global models. Driven by the optimism due to surge in SUZUKI MOTOR CP’s sales for the month of February in India, its shares rallied 3.2% in the last trading session.

The Indian car giant's total sales jumped 11.8% to 164,469 units in February 2021 compared with the 147,110 units sold in February 2020. This also marked a sequential rise of 2.3% compared with the 160,752 units sold in January 2021.

Total domestic sales (domestic + OEM) surged 11.8% year on year to 152,983 units in February 2021 while total export sales climbed 11.9% year on year to 11,486 units in February 2021.

Price and Consensus

Price Consensus Chart for SUZUKI MOTOR CP

This company is expected to post quarterly earnings of $3.34 per share in its upcoming report, which represents a year-over-year change of +167.2%. Revenues are expected to be $9.6 billion, up 21.3% 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 SUZUKI MOTOR CP, 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 SZKMY 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 >>>>

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