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Ituran (ITRN) Stock Jumps 6.5%: Will It Continue to Soar?

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Ituran Location and Control Ltd. (ITRN - Free Report) shares soared 6.5% in the last trading session to close at $26.40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.2% gain over the past four weeks.

Ituran’s rally is largely driven by optimism over the strong growth in the company’s aftermarket subscriber base. Notably, in first-quarter 2021, it recorded an increase of 25,000 in the aftermarket subscriber base on a sequential basis.

This maker of tracking and communications technology for vehicles is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +8.8%. Revenues are expected to be $65.85 million, up 23.5% 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 Ituran, the consensus EPS estimate for the quarter has been revised 5.7% 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 ITRN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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