Back to top

Image: Bigstock

Hillenbrand (HI) Stock Jumps 11.4%: Will It Continue to Soar?

Read MoreHide Full Article

Hillenbrand (HI - Free Report) shares soared 11.4% in the last trading session to close at $26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.9% loss over the past four weeks.

Hillenbrand shares rose following reports that the company is expecting final bids for its sale this week. Potential suitors are said to include private equity firms Apollo Global Management, Lone Star Funds and Stellex Capital Management, though neither Hillenbrand nor the named firms have commented. 

This diversified industrial company specializing in business-to-business products is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -38.6%. Revenues are expected to be $558.9 million, down 33.3% 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 Hillenbrand, 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 HI 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 >>>>

Hillenbrand is part of the Zacks Industrial Services industry. SiteOne Landscape (SITE - Free Report) , another stock in the same industry, closed the last trading session 0.6% higher at $129.08. SITE has returned -11.4% in the past month.

SiteOne Landscape's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.28. Compared to the company's year-ago EPS, this represents a change of +32%. SiteOne Landscape currently boasts a Zacks Rank of #1 (Strong Buy).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hillenbrand Inc (HI) - free report >>

SiteOne Landscape Supply, Inc. (SITE) - free report >>

Published in