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Transcat (TRNS) Soars 18%: Is Further Upside Left in the Stock?

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Transcat, Inc. (TRNS - Free Report) shares ended the last trading session 18% higher at $55.99. 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 1.3% loss over the past four weeks.

Transcat’s rally is largely driven by optimism over the company’s solid momentum in its service segment, backed by strength in its life sciences end market. Notably, the segment reported organic revenue growth of 10% in the fourth quarter of fiscal 2021 (ended March 2021). The company currently expects the segment’s organic revenues to grow in the double-digit range for the first quarter of fiscal 2022 (ending June 2021).

Price and Consensus

Price Consensus Chart for TRNS

This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +118.2%. Revenues are expected to be $43.59 million, up 12.1% 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 Transcat, Inc., 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 TRNS 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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