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Gentherm (THRM) Surges 10.7%: Is This an Indication of Further Gains?
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Gentherm (THRM - Free Report) shares soared 10.7% in the last trading session to close at $66.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.5% loss over the past four weeks.
The share price of the stock is likely to have gained thanks to the robust demand for the company’s new technologies and flagship offerings, which are enabling it to clinch numerous contracts. Gentherm’s deal to buy Alfmeier’s automotive business has also seemingly piqued investors’ interests. The buyout, expected to close in the third quarter of 2022, is set to bolster THRM’s value proposition beyond thermal in comfort, health, wellness and energy efficiency. Apart from revenue addition, the buyout would also enable Gentherm to achieve approximately $10 million in annual run-rate cost savings.
This maker of climate-controlled seats and other products is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -50.6%. Revenues are expected to be $250.57 million, down 5.8% 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 Gentherm, 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 THRM going forward to see if this recent jump can turn into more strength down the road.
Gentherm belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Beam Global (BEEM - Free Report) , closed the last trading session 3% lower at $17.22. Over the past month, BEEM has returned 23.9%.
Beam Global's consensus EPS estimate for the upcoming report has changed -0.9% over the past month to -$0.19. Compared to the company's year-ago EPS, this represents a change of -5.6%. Beam Global currently boasts a Zacks Rank of #3 (Hold).
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Gentherm (THRM) Surges 10.7%: Is This an Indication of Further Gains?
Gentherm (THRM - Free Report) shares soared 10.7% in the last trading session to close at $66.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.5% loss over the past four weeks.
The share price of the stock is likely to have gained thanks to the robust demand for the company’s new technologies and flagship offerings, which are enabling it to clinch numerous contracts. Gentherm’s deal to buy Alfmeier’s automotive business has also seemingly piqued investors’ interests. The buyout, expected to close in the third quarter of 2022, is set to bolster THRM’s value proposition beyond thermal in comfort, health, wellness and energy efficiency. Apart from revenue addition, the buyout would also enable Gentherm to achieve approximately $10 million in annual run-rate cost savings.
This maker of climate-controlled seats and other products is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -50.6%. Revenues are expected to be $250.57 million, down 5.8% 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 Gentherm, 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 THRM 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 >>>>
Gentherm belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Beam Global (BEEM - Free Report) , closed the last trading session 3% lower at $17.22. Over the past month, BEEM has returned 23.9%.
Beam Global's consensus EPS estimate for the upcoming report has changed -0.9% over the past month to -$0.19. Compared to the company's year-ago EPS, this represents a change of -5.6%. Beam Global currently boasts a Zacks Rank of #3 (Hold).