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Global Industrial (GIC) Stock Jumps 6.2%: Will It Continue to Soar?

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Global Industrial (GIC - Free Report) shares rallied 6.2% in the last trading session to close at $34.57. 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 6.5% gain over the past four weeks.

Global Industrial recently filed its 10-K report for 2021. The company delivered solid financial performance on both earnings and revenues in 2021. The top line increased to $1.06 billion, average daily sales improved 5.0%, and the two-year compounded annual growth rate was 6%. Earnings per share from continuing operations climbed 9.5% to $1.84 compared with $1.68 in 2020.

The company has been investing in key strategic initiatives, specifically in areas such as sales, marketing, private brand, digital transformation, and distribution. These efforts will improve customer experience, expand market share and support growth.

This technology products marketer is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +135.7%. Revenues are expected to be $259 million, up 3.2% 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 Global Industrial, the consensus EPS estimate for the quarter has been revised 2.9% 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 GIC 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 >>>>

Global Industrial is part of the Zacks Industrial Services industry. Siemens AG (SIEGY - Free Report) , another stock in the same industry, closed the last trading session 0.9% higher at $75.42. SIEGY has returned -5% in the past month.

For Siemens AG, the consensus EPS estimate for the upcoming report has changed -4.6% over the past month to $1.24. This represents a change of +20.4% from what the company reported a year ago. Siemens AG currently has a Zacks Rank of #3 (Hold).


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