We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
NN (NNBR) Soars 18%: Is Further Upside Left in the Stock?
NN Inc. shares soared 18% in the last trading session to close at $9.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% gain over the past four weeks.
NN’s rally is largely driven by optimism over the company’s solid momentum in its Mobile Solutions business, backed by improved demand for its products across the general industrial end market. Notably, the business contributed $77.8 million to sales in first-quarter 2021.
Price and Consensus
This industrial parts maker is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +209.1%. Revenues are expected to be $119.09 million, down 20.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For NN, the consensus EPS estimate for the quarter has been revised 4% 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 NNBR 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 >>>>