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Will Martin Marietta (MLM) Gain on Rising Earnings Estimates?
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Martin Marietta (MLM - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this seller of granite, limestone, sand and gravel is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Martin Marietta, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.55 per share, which is a change of +34.15% from the year-ago reported number.
The Zacks Consensus Estimate for Martin Marietta has increased 17.02% over the last 30 days, as three estimates have gone higher while two have gone lower.
Current-Year Estimate Revisions
The company is expected to earn $11.30 per share for the full year, which represents a change of -2.08% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for Martin Marietta versus no negative revisions. This has pushed the consensus estimate 7.72% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, Martin Marietta currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Martin Marietta have attracted decent investments and pushed the stock 11% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Will Martin Marietta (MLM) Gain on Rising Earnings Estimates?
Martin Marietta (MLM - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this seller of granite, limestone, sand and gravel is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Martin Marietta, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.55 per share, which is a change of +34.15% from the year-ago reported number.
The Zacks Consensus Estimate for Martin Marietta has increased 17.02% over the last 30 days, as three estimates have gone higher while two have gone lower.
Current-Year Estimate Revisions
The company is expected to earn $11.30 per share for the full year, which represents a change of -2.08% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for Martin Marietta versus no negative revisions. This has pushed the consensus estimate 7.72% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, Martin Marietta currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Martin Marietta have attracted decent investments and pushed the stock 11% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.