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Strength Seen in Spirit Aerosystems (SPR): Can Its 7.8% Jump Turn into More Strength?

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Spirit Aerosystems (SPR - Free Report) shares rallied 7.8% in the last trading session to close at $30.26. 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 8.8% loss over the past four weeks.

Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, recently announced that it has commenced an investigation on behalf of Spirit AeroSystems’ investors, in relation to the company’s possible violations of the federal securities laws. This might have instilled confidence among the stock’s investors, thereby resulting in SPR’s latest share price hike.

This aircraft parts maker is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -1133.3%. Revenues are expected to be $1.48 billion, up 25.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Spirit Aerosystems, the consensus EPS estimate for the quarter has been revised 19.1% 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 SPR 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 >>>>

Spirit Aerosystems is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, Hexcel (HXL - Free Report) , finished the last trading session 0.2% higher at $68.41. HXL has returned 1.8% over the past month.

For Hexcel, the consensus EPS estimate for the upcoming report has changed +0.9% over the past month to $0.39. This represents a change of +77.3% from what the company reported a year ago. Hexcel currently has a Zacks Rank of #3 (Hold).

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