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Crane Holdings (CXT) Surges 5.5%: Is This an Indication of Further Gains?

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Crane Holdings (CXT - Free Report) shares rallied 5.5% in the last trading session to close at $48.88. 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 58.8% loss over the past four weeks.

The price appreciation seems to be driven by investors’ optimism about the newly spun-off company's performance going further. Crane NXT is expected to generate $1.4 billion in revenues and a pre-corporate Adjusted EBITDA margin of around 28% in 2023.

This maker of engineered industrial products is expected to post quarterly earnings of $1.85 per share in its upcoming report, which represents a year-over-year change of +2.2%. Revenues are expected to be $781.5 million, down 2.5% 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 Crane Holdings, the consensus EPS estimate for the quarter has been revised 2.9% 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 CXT 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 >>>>

Crane Holdings is a member of the Zacks Technology Services industry. One other stock in the same industry, Vacasa, Inc. (VCSA - Free Report) , finished the last trading session 3.2% lower at $0.79. VCSA has returned -10% over the past month.

For Vacasa, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.24. This represents a change of -84.6% from what the company reported a year ago. Vacasa, Inc. currently has a Zacks Rank of #3 (Hold).


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