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Watts Water (WTS) Stock Jumps 5.4%: Will It Continue to Soar?
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Watts Water (WTS - Free Report) shares soared 5.4% in the last trading session to close at $124.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.9% loss over the past four weeks.
The company is benefiting from aggressive cost reduction actions along with a strong balance sheet. Watts Water is focused on enhancing organic growth, driving margin expansion and reinvesting in productivity initiatives. It aims to launch smart and connected products, which are likely to provide it with further differentiation in the marketplace.
Watts Water believes that the Asia-Pacific segment’s margin will expand primarily driven by higher volume. Furthermore, operating margin in the Americas segment will likely expand driven by volume leverage and productivity initiatives. The company expects that its pricing actions should also help to partly mitigate commodity inflation.
This maker of valves for plumbing, heating and water needs is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of +10.8%. Revenues are expected to be $489.68 million, up 4.9% 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 Watts Water, 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 WTS going forward to see if this recent jump can turn into more strength down the road.
Watts Water belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Transcat, Inc. (TRNS - Free Report) , closed the last trading session 2.5% higher at $61.55. Over the past month, TRNS has returned -5%.
For Transcat, Inc., the consensus EPS estimate for the upcoming report has changed -19.4% over the past month to $0.29. This represents a change of -40.8% from what the company reported a year ago. Transcat, Inc. currently has a Zacks Rank of #3 (Hold).
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Watts Water (WTS) Stock Jumps 5.4%: Will It Continue to Soar?
Watts Water (WTS - Free Report) shares soared 5.4% in the last trading session to close at $124.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.9% loss over the past four weeks.
The company is benefiting from aggressive cost reduction actions along with a strong balance sheet. Watts Water is focused on enhancing organic growth, driving margin expansion and reinvesting in productivity initiatives. It aims to launch smart and connected products, which are likely to provide it with further differentiation in the marketplace.
Watts Water believes that the Asia-Pacific segment’s margin will expand primarily driven by higher volume. Furthermore, operating margin in the Americas segment will likely expand driven by volume leverage and productivity initiatives. The company expects that its pricing actions should also help to partly mitigate commodity inflation.
This maker of valves for plumbing, heating and water needs is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of +10.8%. Revenues are expected to be $489.68 million, up 4.9% 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 Watts Water, 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 WTS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Watts Water belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Transcat, Inc. (TRNS - Free Report) , closed the last trading session 2.5% higher at $61.55. Over the past month, TRNS has returned -5%.
For Transcat, Inc., the consensus EPS estimate for the upcoming report has changed -19.4% over the past month to $0.29. This represents a change of -40.8% from what the company reported a year ago. Transcat, Inc. currently has a Zacks Rank of #3 (Hold).