Custom Truck One Source, Inc. (CTOS) shares soared 10.1% in the last trading session to close at $5.67. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.1% gain over the past four weeks.
Custom Truck One Source shares surged after Wall Street firm Stifel upgraded the stock from Hold to Buy and increased its price target. Stifel upgraded Custom Truck, citing improved equipment availability in the second quarter, stronger rental utilization in the Transmission and Distribution market and rising optimism for Truck Equipment Sales, supporting a positive earnings outlook.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $452.87 million, up 7.1% 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 Custom Truck One Source, the consensus EPS estimate for the quarter has been revised 93.4% 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 CTOS 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 >>>>
Custom Truck One Source is part of the Zacks Automotive - Original Equipment industry. Ferrari (RACE), another stock in the same industry, closed the last trading session 0.2% lower at $487.11. RACE has returned 5.1% in the past month.
Ferrari's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.56. Compared to the company's year-ago EPS, this represents a change of +4.1%. Ferrari currently boasts a Zacks Rank of #2 (Buy).
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Custom Truck One Source, Inc. (CTOS): Free Stock Analysis Report Ferrari N.V. (RACE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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