Nordson Corporation NDSN shares soared 11.8% in the last trading session to close at $187.29. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.7% loss over the past four weeks.
Nordson has been gaining on solid momentum across the optical sensors and measurement & control businesses. Strong customer demand for the nonwovens, packaging, consumer non-durable and optical sensors product lines is aiding the company.
This maker of adhesives and industrial coatings is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of +0.9%. Revenues are expected to be $673.58 million, up 3.5% 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 Nordson, 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 NDSN 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 >>>>
Nordson is a member of the Zacks Manufacturing - General Industrial industry. One other stock in the same industry, Gates Industrial (GTES), finished the last trading session 15.3% higher at $17.94. GTES has returned -20.2% over the past month.
For Gates Industrial
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Nordson Corporation (NDSN): Free Stock Analysis Report Gates Industrial Corporation PLC (GTES): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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