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Middleby (MIDD) Stock Jumps 3.5%: Will It Continue to Soar?

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Middleby (MIDD - Free Report) shares soared 3.5% in the last trading session to close at $140. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.7% loss over the past four weeks.

The stock gained primarily on optimism surrounding easing supply chain disruptions and, reduction in raw material costs owing to deceleration in inflation.

This food preparation equipment company is expected to post quarterly earnings of $1.93 per share in its upcoming report, which represents a year-over-year change of -9.4%. Revenues are expected to be $967.97 million, down 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 Middleby, the consensus EPS estimate for the quarter has been revised marginally 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 MIDD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Middleby belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Manitex (MNTX - Free Report) , closed the last trading session 0.8% higher at $5.09. Over the past month, MNTX has returned -2.1%.

Manitex's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. Compared to the company's year-ago EPS, this represents a change of -120%. Manitex currently boasts a Zacks Rank of #1 (Strong Buy).

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