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Strength Seen in Quaker Chemical (KWR): Can Its 3.5% Jump Turn into More Strength?

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Quaker Chemical (KWR - Free Report) shares ended the last trading session 3.5% higher at $152.60. 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 1.3% loss over the past four weeks.

KWR’s rally appears to reflect a favorable demand environment and optimism over its efforts to mitigate the impact of the ongoing and expected cost pressures. The company’s actions to increase selling prices are aiding its performance. It is taking measures to implement broad price increases in an effort to offset raw material cost inflation and supply-chain and logistics cost pressures.

This specialty chemical company is expected to post quarterly earnings of $1.14 per share in its upcoming report, which represents a year-over-year change of -37.4%. Revenues are expected to be $464.45 million, up 6.7% 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 Quaker Chemical, 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 KWR 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 >>>>

Quaker Chemical is a member of the Zacks Chemical - Specialty industry. One other stock in the same industry, CSW Industrials (CSWI - Free Report) , finished the last trading session 2.5% higher at $101.38. CSWI has returned -6.5% over the past month.

CSW Industrials' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.37. Compared to the company's year-ago EPS, this represents a change of -6.2%. CSW Industrials currently boasts a Zacks Rank of #2 (Buy).


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