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Adient (ADNT) Soars 6.7%: Is Further Upside Left in the Stock?

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Adient (ADNT - Free Report) shares soared 6.7% in the last trading session to close at $18.80. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.8% gain over the past four weeks.

Adient shares jumped after the company reported an adjusted EBITDA of $233 million for its fiscal second quarter, marking a 3% increase from the previous year. The company maintained its fiscal 2025 guidance, projecting consolidated sales of $13.9 billion and adjusted EBITDA of $850 million. Strong business performance is expected to help the company navigate broader economic challenges and counter the impact of reduced margins due to lower production volumes.

This automotive seating and interiors supplier is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +43.8%. Revenues are expected to be $3.49 billion, down 6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Adient, the consensus EPS estimate for the quarter has been revised 2.1% 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 ADNT 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 >>>>

Adient belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, The Shyft Group (SHYF - Free Report) , closed the last trading session 1.5% higher at $12.33. Over the past month, SHYF has returned 20.1%.

The Shyft Group's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.14. Compared to the company's year-ago EPS, this represents a change of -12.5%. The Shyft Group currently boasts a Zacks Rank of #3 (Hold).


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