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Strength Seen in L.B. Foster (FSTR): Can Its 10.3% Jump Turn into More Strength?
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L.B. Foster (FSTR - Free Report) shares soared 10.3% in the last trading session to close at $10.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11% loss over the past four weeks.
The company’s shares are heading higher in anticipation of strong third-quarter results. Its results are expected to be aided by strong order rates and improved demand in freight and transit rail and general infrastructure markets. Its price increase actions for product and services to counter cost inflation in raw materials and labor are also likely to support margins.
This railroad track manufacturer is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $127.43 million, down 2% 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 L.B. Foster, 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 FSTR going forward to see if this recent jump can turn into more strength down the road.
L.B. Foster belongs to the Zacks Steel - Producers industry. Another stock from the same industry, Ryerson Holding (RYI - Free Report) , closed the last trading session 3.9% higher at $31.20. Over the past month, RYI has returned 3.3%.
For Ryerson, the consensus EPS estimate for the upcoming report has changed +126.2% over the past month to $2.47. This represents a change of -24% from what the company reported a year ago. Ryerson currently has a Zacks Rank of #1 (Strong Buy).
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Strength Seen in L.B. Foster (FSTR): Can Its 10.3% Jump Turn into More Strength?
L.B. Foster (FSTR - Free Report) shares soared 10.3% in the last trading session to close at $10.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11% loss over the past four weeks.
The company’s shares are heading higher in anticipation of strong third-quarter results. Its results are expected to be aided by strong order rates and improved demand in freight and transit rail and general infrastructure markets. Its price increase actions for product and services to counter cost inflation in raw materials and labor are also likely to support margins.
This railroad track manufacturer is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $127.43 million, down 2% 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 L.B. Foster, 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 FSTR 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 >>>>
L.B. Foster belongs to the Zacks Steel - Producers industry. Another stock from the same industry, Ryerson Holding (RYI - Free Report) , closed the last trading session 3.9% higher at $31.20. Over the past month, RYI has returned 3.3%.
For Ryerson, the consensus EPS estimate for the upcoming report has changed +126.2% over the past month to $2.47. This represents a change of -24% from what the company reported a year ago. Ryerson currently has a Zacks Rank of #1 (Strong Buy).