Back to top

Image: Bigstock

The Manitowoc Company, Inc. (MTW) Moves 12.1% Higher: Will This Strength Last?

Read MoreHide Full Article

The Manitowoc Company, Inc. (MTW - Free Report) shares rallied 12.1% in the last trading session to close at $19.67. 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 17.2% gain over the past four weeks.

Manitowoc shares gained as an analyst at Robert W. Baird upgraded the stock from Neutral to Outperform. Per the analyst, the growing number of infrastructure initiatives globally will fuel demand for cranes. The analyst added that over the past three decades, Manitowoc’s crane orders have been well correlated with broader commodity inflation trends (although with a 12-month lag).

Price and Consensus

Price Consensus Chart for The Manitowoc Company, Inc.

This company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +105.6%. Revenues are expected to be $345.38 million, up 4.9% 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 The Manitowoc Company, Inc., the consensus EPS estimate for the quarter has been revised 123.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MTW 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 >>>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The Manitowoc Company, Inc. (MTW) - free report >>

Published in