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LCI (LCII) Soars 3.7%: Is Further Upside Left in the Stock?

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LCI (LCII - Free Report) shares soared 3.7% in the last trading session to close at $127.8. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.6% loss over the past four weeks.

LCI Industries shares gained on the back of strong 2025 results and a positive 2026 outlook. In 2025, net sales grew 10% to $4.1 billion, and operating margin expanded by 100 basis points to 6.8%. Looking ahead, the company projects 2026 revenue in the range of $4.2 billion to $4.3 billion, with operating margins expected to reach 7.5% to 8%.

This recreational vehicle parts supplier is expected to post quarterly earnings of $2.22 per share in its upcoming report, which represents a year-over-year change of +1.4%. Revenues are expected to be $1.09 billion, up 3.9% 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 LCI, the consensus EPS estimate for the quarter has been revised 0.9% 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 LCII 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 >>>>

LCI 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 0.3% higher at $93.74. VC has returned 3.7% over the past month.

Visteon's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.96. Compared to the company's year-ago EPS, this represents a change of -18.3%. Visteon currently boasts a Zacks Rank of #4 (Sell).

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