Garrett Motion (GTX) shares ended the last trading session 9.8% higher at $8.06. 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 22.4% loss over the past four weeks.
Garrett shares rose yesterday as investors reacted to its strong position in the niche turbocharger market, where limited competition helps protect profit margins. The gain was also fueled by new business wins that highlight its technology leadership and support ongoing expansion in the US and China.
This maker of vehicle turbocharging and electric-boosting gear is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $839 million, down 8.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Garrett Motion, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GTX 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 >>>>
Garrett Motion belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Denso Corp. (DNZOY), closed the last trading session 2.9% higher at $11.50. Over the past month, DNZOY has returned -15.5%.
For Denso
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Garrett Motion Inc. (GTX): Free Stock Analysis Report Denso Corp. (DNZOY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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