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The Shyft Group (SHYF) Stock Jumps 12.3%: Will It Continue to Soar?

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The Shyft Group (SHYF - Free Report) shares ended the last trading session 12.3% higher at $38.65. 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 4.3% gain over the past four weeks.

The automotive manufacturer reported its fourth-quarter 2020 results yesterday, before the opening bell. Better-than-expected earnings and revenues as well as robust 2021 guidance drove the stock higher. The firm posted earnings of 27 cents a share, which surpassed the Zacks Consensus Estimate of 24 cents. Revenues of $172 million outpaced the consensus mark of $169 million. On a further encouraging note, Shyft envisions 2021 revenues and net income in the band of $850-$950 million and $51-$58 million, implying a year over year growth of 33.1% and 64.6%, respectively, at the midpoint of the guided range.  

The company’s strategic acquisitions and divestments in a bid to streamline its portfolio and enhance profitability poise it well for further gains. While the company recently sold its Emergency Response business, sharpened focus on its Specialty Vehicles division with the buyout of Royal Truck Body and F3 MFG Inc. has buoyed Shyft’s growth prospects and margins.

Price and Consensus

Price Consensus Chart for The Shyft Group

This maker of chassis for fire trucks, RVs and other vehicles is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -48.9%. Revenues are expected to be $169.25 million, down 6% 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 Shyft Group, the consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SHYF 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 >>>>


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