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Distribution Solutions (DSGR) Soars 8.6%: Is Further Upside Left in the Stock?
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Distribution Solutions Group (DSGR - Free Report) shares ended the last trading session 8.6% higher at $48.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.3% gain over the past four weeks.
The price appreciation is likely to have been driven by the company’s strong relationship with customers and increasing leads from cross selling. Investors expect strong customer relationships to have driven healthy organic growth. The company is also expected to have reaped the benefits of acquisitions.
This industrial products and tools maker is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -29.8%. Revenues are expected to be $336.45 million, up 185.4% 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 Distribution Solutions, the consensus EPS estimate for the quarter has been revised 3.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DSGR going forward to see if this recent jump can turn into more strength down the road.
Distribution Solutions is a member of the Zacks Technology Services industry. One other stock in the same industry, Alithya Group , finished the last trading session 3.2% lower at $1.81. ALYA has returned -8.3% over the past month.
For Alithya, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. This represents a change of +83.3% from what the company reported a year ago. Alithya currently has a Zacks Rank of #3 (Hold).
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Distribution Solutions (DSGR) Soars 8.6%: Is Further Upside Left in the Stock?
Distribution Solutions Group (DSGR - Free Report) shares ended the last trading session 8.6% higher at $48.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.3% gain over the past four weeks.
The price appreciation is likely to have been driven by the company’s strong relationship with customers and increasing leads from cross selling. Investors expect strong customer relationships to have driven healthy organic growth. The company is also expected to have reaped the benefits of acquisitions.
This industrial products and tools maker is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -29.8%. Revenues are expected to be $336.45 million, up 185.4% 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 Distribution Solutions, the consensus EPS estimate for the quarter has been revised 3.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DSGR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Distribution Solutions is a member of the Zacks Technology Services industry. One other stock in the same industry, Alithya Group , finished the last trading session 3.2% lower at $1.81. ALYA has returned -8.3% over the past month.
For Alithya, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. This represents a change of +83.3% from what the company reported a year ago. Alithya currently has a Zacks Rank of #3 (Hold).