Back to top

Image: Bigstock

Eagle Bulk Shipping (EGLE) Moves 7.8% Higher: Will This Strength Last?

Read MoreHide Full Article

Eagle Bulk Shipping (EGLE - Free Report) shares ended the last trading session 7.8% higher at $48.71. 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 10.4% gain over the past four weeks.

The uptick is attributable to the overall optimism surrounding the shipping industry as economic activities gradually gather pace. The northward movement of the Baltic Dry Index – a proxy for global dry freight rates across 23 routes – reflects the optimism surrounding the dry bulk market. In fact shares of the company have performed brilliantly so far this year, gaining 156%.


Price and Consensus

Price Consensus Chart for EGLE

This shipping company is expected to post quarterly earnings of $2.90 per share in its upcoming report, which represents a year-over-year change of +248%. Revenues are expected to be $96.47 million, up 186.9% 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 Eagle Bulk Shipping, the consensus EPS estimate for the quarter has been revised 446.5% 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 EGLE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). 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:

Eagle Bulk Shipping Inc. (EGLE) - free report >>

Published in