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Alta Equipment (ALTG) Moves 5.4% Higher: Will This Strength Last?

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Alta Equipment Group Inc. (ALTG - Free Report) shares rallied 5.4% in the last trading session to close at $12.70. 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 0.4% gain over the past four weeks.

Alta Equipment’s rally is primarily driven by optimism over strong customer demand, a favorable pricing environment, an increase in new and used equipment sales and parts sales. Also, the acquisition of a distributor of market-leading construction and turf equipment, Burris, bodes well for the company.

This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -1500%. Revenues are expected to be $439.24 million, up 4.4% 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 Alta Equipment Group, the consensus EPS estimate for the quarter has been revised 28.1% 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 ALTG 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 >>>>

Alta Equipment Group belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Graco Inc. (GGG - Free Report) , closed the last trading session 0.6% higher at $93.21. Over the past month, GGG has returned 5.2%.

Graco's consensus EPS estimate for the upcoming report has changed +1.8% over the past month to $0.74. Compared to the company's year-ago EPS, this represents no change. Graco currently boasts a Zacks Rank of #3 (Hold).

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