Vulcan Materials VMC shares soared 5.8% in the last trading session to close at $239.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.
Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Vulcan shares soared, reflecting renewed investor optimism.
This construction materials company is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $1.69 billion, up 9.3% 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 Vulcan, the consensus EPS estimate for the quarter has been revised 1.7% 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 VMC 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 >>>>
Vulcan is a member of the Zacks Building Products - Concrete and Aggregates industry. One other stock in the same industry, Pacasmayo (CPAC), finished the last trading session 1.4% higher at $5.27. CPAC has returned -8.6% over the past month.
Pacasmayo'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%. Pacasmayo currently boasts a Zacks Rank of #4 (Sell).
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Vulcan Materials Company (VMC) : Free Stock Analysis Report
Cementos Pacasmayo S.A.A. (CPAC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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