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Aisin Seiki (ASEKY) Soars 10.3%: Is Further Upside Left in the Stock?

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Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY - Free Report) shares ended the last trading session 10.3% higher at $12.57. 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 9.2% loss over the past four weeks.

Shares of Aisin surged following the launch of a solar power plant by its manufacturing subsidiary in Türkiye. With this facility now operational, all of Aisin’s production sites across Europe, including Türkiye, are fully powered by renewable energy. The company aims to achieve carbon neutrality in Europe by 2040, earlier than the broader Aisin Group’s target. As a key step toward this goal, Aisin has introduced solar and wind energy, aiming to power all its European production facilities entirely with renewable energy by 2025.

This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +118.2%. Revenues are expected to be $8.06 billion, up 6.1% 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 Aisin Seiki, 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 ASEKY 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 >>>>

Aisin Seiki is a member of the Zacks Automotive - Original Equipment industry. One other stock in the same industry, Visteon (VC - Free Report) , finished the last trading session 1.2% higher at $91.08. VC has returned 1.2% over the past month.

For Visteon, the consensus EPS estimate for the upcoming report has changed -7.4% over the past month to $1.86. This represents a change of -26.8% from what the company reported a year ago. Visteon currently has a Zacks Rank of #3 (Hold).


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