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Regal Rexnord (RRX) Soars 8.3%: Is Further Upside Left in the Stock?
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Regal Rexnord Corporation (RRX - Free Report) shares ended the last trading session 8.3% higher at $238.19. 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 8.8% gain over the past four weeks.
Regal Rexnord’s rally is largely driven by optimism over solid momentum in the Automation & Motion Control segment driven by strength in the data center and discrete automation markets, as well as signs of recovery in the food & beverage market. Robust general industrial market within the Industrial Powertrain Solutions segment also bodes well for the company.
This maker of controls for electric motors is expected to post quarterly earnings of $2.60 per share in its upcoming report, which represents a year-over-year change of +4.8%. Revenues are expected to be $1.58 billion, up 5.4% 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 Regal Rexnord, the consensus EPS estimate for the quarter has been revised marginally 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 RRX going forward to see if this recent jump can turn into more strength down the road.
Regal Rexnord is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Watsco (WSO - Free Report) , finished the last trading session 1.5% higher at $416.73. WSO has returned 14.2% over the past month.
Watsco's consensus EPS estimate for the upcoming report has changed +2.9% over the past month to $4.29. Compared to the company's year-ago EPS, this represents a change of -5.1%. Watsco currently boasts a Zacks Rank of #3 (Hold).
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Regal Rexnord (RRX) Soars 8.3%: Is Further Upside Left in the Stock?
Regal Rexnord Corporation (RRX - Free Report) shares ended the last trading session 8.3% higher at $238.19. 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 8.8% gain over the past four weeks.
Regal Rexnord’s rally is largely driven by optimism over solid momentum in the Automation & Motion Control segment driven by strength in the data center and discrete automation markets, as well as signs of recovery in the food & beverage market. Robust general industrial market within the Industrial Powertrain Solutions segment also bodes well for the company.
This maker of controls for electric motors is expected to post quarterly earnings of $2.60 per share in its upcoming report, which represents a year-over-year change of +4.8%. Revenues are expected to be $1.58 billion, up 5.4% 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 Regal Rexnord, the consensus EPS estimate for the quarter has been revised marginally 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 RRX 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 >>>>
Regal Rexnord is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Watsco (WSO - Free Report) , finished the last trading session 1.5% higher at $416.73. WSO has returned 14.2% over the past month.
Watsco's consensus EPS estimate for the upcoming report has changed +2.9% over the past month to $4.29. Compared to the company's year-ago EPS, this represents a change of -5.1%. Watsco currently boasts a Zacks Rank of #3 (Hold).