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Strength Seen in Custom Truck One Source, Inc. (CTOS): Can Its 5.5% Jump Turn into More Strength?

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Custom Truck One Source, Inc. (CTOS - Free Report) shares rallied 5.5% in the last trading session to close at $8.50. 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 5.6% gain over the past four weeks.

Custom Truck, which offers specialty equipment rental services to utilities, energy, telecom and rail industries among others, is riding on increased demand for its offerings. Investors are also optimistic about the firm’s latest acquisition of HiRail Leasing Group, which has strengthened COTS’ railroad-focused equipment offerings and bolstered foothold in the Canadian market. Post the strategic buyout, Baird analyst, Justin Hauke, initiated coverage of Custom Truck One Source with an ‘Outperform’ rating.

This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +80%. Revenues are expected to be $386.15 million, up 363.8% 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 Custom Truck One Source, 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 CTOS 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 >>>>

Custom Truck One Source, Inc. belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, China Automotive Systems (CAAS - Free Report) , closed the last trading session 0.7% lower at $2.68. Over the past month, CAAS has returned 3.9%.

China Automotive Systems' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents a change of +500%. China Automotive Systems currently boasts a Zacks Rank of #3 (Hold).

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