Esab (ESAB) shares soared 12.5% in the last trading session to close at $117.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.6% loss over the past four weeks.
ESAB Corp. shares got a boost yesterday after U.S President Trump announced a 90-day pause on certain tariffs for most countries (except China). The majority of ESAB's sales are derived from international operations. In 2024, 78% of its sales were generated outside of the United States. The company has principal manufacturing facilities in 14 countries in addition to the United States.
This maker of welding and cutting equipment is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of -0.8%. Revenues are expected to be $630.3 million, down 8.6% 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 Esab, 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 ESAB 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 >>>>
Esab belongs to the Zacks Metal Products - Procurement and Fabrication industry. Another stock from the same industry, Northwest Pipe Co. (NWPX), closed the last trading session 6.3% higher at $42.14. Over the past month, NWPX has returned -2.3%.
For Northwest Pipe Co.
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ESAB Corporation (ESAB): Free Stock Analysis Report Northwest Pipe Company (NWPX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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