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Nordson (NDSN) Stock Jumps 3.1%: Will It Continue to Soar?

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Nordson (NDSN - Free Report) shares soared 3.1% in the last trading session to close at $243.30. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.7% loss over the past four weeks.

The increase in shares of the company can be attributed to the optimism surrounding easing supply chain disruptions and, reduction in raw material costs, thanks to deceleration in inflation.

This maker of adhesives and industrial coatings is expected to post quarterly earnings of $1.99 per share in its upcoming report, which represents a year-over-year change of -3.9%. Revenues are expected to be $625.87 million, up 2.7% 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 Nordson, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NDSN 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 >>>>

Nordson belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Manitex (MNTX - Free Report) , closed the last trading session 2% higher at $4.08. Over the past month, MNTX has returned 0%.

Manitex's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. Compared to the company's year-ago EPS, this represents a change of +125%. Manitex currently boasts a Zacks Rank of #2 (Buy).


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