Back to top

Image: Bigstock

LSB (LXU) Moves 6.1% Higher: Will This Strength Last?

Read MoreHide Full Article

LSB (LXU - Free Report) shares soared 6.1% in the last trading session to close at $23.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11% gain over the past four weeks.

Optimism over strengthening fertilizer market dynamics is driving the stock higher. The company is benefiting from robust demand and a rally in prices for fertilizers, supported by higher crop prices and strong farmer income. It is gaining from strong demand and pricing for its agricultural and industrial products. Strong demand from key end markets including homebuilding and power generation is driving results in its industrial business.

This chemical maker is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +158.7%. Revenues are expected to be $169.3 million, up 72.5% 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 LSB, 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 LXU 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 >>>>

LSB is part of the Zacks Diversified Operations industry. Danaher (DHR - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $291.69. DHR has returned 6.1% in the past month.

Danaher's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.54. Compared to the company's year-ago EPS, this represents a change of +0.8%. Danaher currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Danaher Corporation (DHR) - free report >>

Lsb Industries Inc. (LXU) - free report >>

Published in