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Strength Seen in Helios Technologies (HLIO): Can Its 5.2% Jump Turn into More Strength?

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Helios Technologies, Inc. (HLIO - Free Report) shares rallied 5.2% in the last trading session to close at $66.33. 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 5.9% loss over the past four weeks.

Helios’ rally is largely driven by optimism regarding the company’s strong momentum in mobile equipment and health & wellness end markets, backed by a robust demand environment for its products and solutions.

This maker of screw-in hydraulic cartridge valves and manifolds is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of -1.7%. Revenues are expected to be $242.57 million, up 8.6% 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 Helios Technologies, 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 HLIO 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 >>>>

Helios Technologies belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Middleby (MIDD - Free Report) , closed the last trading session 3.4% higher at $130.62. Over the past month, MIDD has returned -12.9%.

Middleby's consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $2.16. Compared to the company's year-ago EPS, this represents a change of +2.4%. Middleby currently boasts a Zacks Rank of #3 (Hold).

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