Redwire Corporation (RDW) Moves 6.3% Higher: Will This Strength Last?

Redwire Corporation (RDW) shares ended the last trading session 6.3% higher at $16.64. 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 19% loss over the past four weeks.

The latest uptick in Redwire's shares is most likely been driven by a "Moderate Buy" consensus from Wall Street analysts, with six of eight brokerages recommending the stock as the company strengthens its foothold in the aerospace and defense sectors. 

This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +59.3%. Revenues are expected to be $100.85 million, up 29.1% 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 Redwire Corporation, the consensus EPS estimate for the quarter has been revised 63.3% 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 RDW 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 >>>>

Redwire Corporation belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, Textron (TXT), closed the last trading session 0.3% lower at $85.02. Over the past month, TXT has returned 9.6%.

For Textron, the consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $1.44. This represents a change of -6.5% from what the company reported a year ago. Textron currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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