Mitsubishi Heavy Industries, Ltd. MHVYF shares soared 6.2% in the last trading session to close at $23.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.1% loss over the past four weeks.
Mitsubishi Heavy Industries’ rally is primarily driven by strength and healthy levels of order intake across the Energy Systems, Plants & Infrastructure Systems, and Aircraft, Defense & Space segments. Several favorable trends across the metals machinery, Heating, Ventilation & Air Conditioning (HVAC), aero engines and defense & space end markets have been driving the company’s performance.
This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $8.01 billion, up 12.4% 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 Mitsubishi Heavy Industries, the consensus EPS estimate for the quarter has been revised 17.6% 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 MHVYF 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 >>>>
Mitsubishi Heavy Industries is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Helios Technologies (HLIO), finished the last trading session 2% higher at $36.62. HLIO has returned 14.8% over the past month.
Helios Technologies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.48. Compared to the company's year-ago EPS, this represents a change of -25%. Helios Technologies currently boasts a Zacks Rank of #3 (Hold).
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Mitsubishi Heavy Industries, Ltd. (MHVYF): Free Stock Analysis Report Helios Technologies, Inc (HLIO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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