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AAR (AIR) Surges 5%: Is This an Indication of Further Gains?

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AAR (AIR - Free Report) shares soared 5% in the last trading session to close at $52.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.2% gain over the past four weeks.

The latest uptick in the share performance of AAR Corp. can be attributed to the recent receipt of the Buy rating by this stock from a few analysts, as reported by Marketbeat.com

This airplane maintenance company is expected to post quarterly earnings of $0.79 per share in its upcoming report, which represents a year-over-year change of +68.1%. Revenues are expected to be $473.91 million, up 8.3% 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 AAR, 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 AIR 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 >>>>

AAR is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, Hexcel (HXL - Free Report) , finished the last trading session 2.1% higher at $59.82. HXL has returned 11.3% over the past month.

For Hexcel, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. This represents a change of +287.5% from what the company reported a year ago. Hexcel currently has a Zacks Rank of #3 (Hold).


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