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Twin Disc (TWIN) Soars 12.5%: Is Further Upside Left in the Stock?

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Twin Disc, Inc. (TWIN - Free Report) shares rallied 12.5% in the last trading session to close at $11.87. 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 2.6% gain over the past four weeks.

Twin Disc’s rally is largely driven by optimism over healthy growth in aftermarket orders across many of the company’s global markets. Improvement in demand trends driven by re-opening efforts, coupled with benefits of government stimulus programs, and an improving repair and replacement cycle are likely to boost its operational performance in the quarters ahead.

Price and Consensus

Price Consensus Chart for TWIN

This power transmission equipment maker is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +58.3%. Revenues are expected to be $60.25 million, up 1.5% 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 Twin Disc, 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 TWIN 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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