Axalta Coating Systems (AXTA) Moves 11.5% Higher: Will This Strength Last?

Axalta Coating Systems (AXTA) shares rallied 11.5% in the last trading session to close at $31.76. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.1% loss over the past four weeks.

AXTA's shares rallied as material stocks climbed, triggered by President Trump’s announcement of a 90-day suspension of reciprocal tariffs for most countries.

This high-performance coating system maker is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $1.28 billion, down 1.4% 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 Axalta Coating Systems, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AXTA 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 >>>>

Axalta Coating Systems is a member of the Zacks Chemical - Specialty industry. One other stock in the same industry, Minerals Technologies (MTX), finished the last trading session 9.1% higher at $58.45. MTX has returned -20.2% over the past month.

For Minerals Technologies

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This article originally published on Zacks Investment Research (zacks.com).

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