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Daseke (DSKE) Moves 14.3% Higher: Will This Strength Last?

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Daseke (DSKE - Free Report) shares rallied 14.3% in the last trading session to close at $7.98. 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 15.8% gain over the past four weeks.

The uptick is mainly owing to the optimism surrounding the tansportation-services industry. Owing to the gradual recovery in economic activities, freight demand continues to be strong despite minor hiccups. This is supporting growth of the transport service providers.. The strong demand scenario prompted Stifel to upgrade the rating on DSKE to Buy from Hold.

This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -26.5%. Revenues are expected to be $426.4 million, up 5.5% 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 Daseke, 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 DSKE 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 >>>>

Daseke is a member of the Zacks Transportation - Services industry. One other stock in the same industry, U.S. Xpress (USX - Free Report) , finished the last trading session 5.4% higher at $3.74. USX has returned 33% over the past month.

U.S. Xpress' consensus EPS estimate for the upcoming report has changed +36% over the past month to $0.05. Compared to the company's year-ago EPS, this represents a change of -37.5%. U.S. Xpress currently boasts a Zacks Rank of #3 (Hold).


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