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Strength Seen in Mayville Engineering (MEC): Can Its 11.2% Jump Turn into More Strength?

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Mayville Engineering (MEC - Free Report) shares rallied 11.2% in the last trading session to close at $14.83. 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 3% gain over the past four weeks.

This contract manufacturer benefits from investments in technology and automation, acquisition synergies and long-term macroeconomic trends.

This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +575%. Revenues are expected to be $118.97 million, up 5.3% 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 Mayville Engineering, 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 MEC 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 >>>>

Mayville Engineering belongs to the Zacks Engineering - R and D Services industry. Another stock from the same industry, Quanta Services (PWR - Free Report) , closed the last trading session 1.3% higher at $151.51. Over the past month, PWR has returned 3.7%.

For Quanta Services, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.61. This represents a change of +4.6% from what the company reported a year ago. Quanta Services currently has a Zacks Rank of #4 (Sell).

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