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Crane NXT (CXT) Moves 6.4% Higher: Will This Strength Last?

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Crane NXT (CXT - Free Report) shares soared 6.4% in the last trading session to close at $56.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.6% gain over the past four weeks.

The price appreciation seems to be driven by investor’s positive expectation from the company’s performance going further. Crane’s improved guidance for Q3 and full year 2023 are indications of such positive outlook. The upward revision in Adjusted EPS guidance to $4.00-$4.15, up from $3.85-$4.15, and the decrease in net non-operating expense to $45 million from $50 million, attributed to lower interest costs contribute to the company's anticipated gains.


This maker of engineered industrial products is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -56.8%. Revenues are expected to be $354.5 million, down 57% 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 Crane NXT, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 NXT is part of the Zacks Technology Services industry. Spotify (SPOT - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $193.04. SPOT has returned 9.2% in the past month.

For Spotify, the consensus EPS estimate for the upcoming report has changed -121.8% over the past month to -$0.08. This represents a change of +94.4% from what the company reported a year ago. Spotify currently has a Zacks Rank of #2 (Buy).

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