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DMC Global (BOOM) Surges 5.4%: Is This an Indication of Further Gains?

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DMC Global Inc. (BOOM - Free Report) shares ended the last trading session 5.4% higher at $29.77. 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 23.4% loss over the past four weeks.

DMC Global’s rally is primarily driven by optimism regarding the company’s strong momentum in the DynaEnergetics business unit. Strength across the energy end market, coupled with solid demand for Arcadia products and the implementation of a new enterprise resource planning system, bodes well for the company.

This diversified holding company is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of -1000%. Revenues are expected to be $128.85 million, up 131.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For DMC Global, the consensus EPS estimate for the quarter has been revised 376.9% 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 BOOM 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 >>>>

DMC Global belongs to the Zacks Industrial Services industry. Another stock from the same industry, W.W. Grainger (GWW - Free Report) , closed the last trading session 0.2% lower at $490.08. Over the past month, GWW has returned 2.6%.

For W.W. Grainger, the consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $6.17. This represents a change of +37.7% from what the company reported a year ago. W.W. Grainger currently has a Zacks Rank of #3 (Hold).


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