Strength Seen in Amcor (AMCR): Can Its 5.3% Jump Turn into More Strength?

Amcor (AMCR) shares rallied 5.3% in the last trading session to close at $9.02. 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 14.3% loss over the past four weeks.

Amcor’s shares got a boost yesterday after U.S President Trump announced a 90-day pause on certain tariffs for most countries (except China). Amcor operates in around 212 principal manufacturing sites spanning more than 40 countries.

This packaging company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +5.6%. Revenues are expected to be $3.54 billion, up 3.7% 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 Amcor, 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 AMCR 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 >>>>

Amcor belongs to the Zacks Containers - Paper and Packaging industry. Another stock from the same industry, Packaging Corp. (PKG), closed the last trading session 7.7% higher at $189.44. Over the past month, PKG has returned -10.9%.

Packaging Corp.'s consensus EPS estimate for the upcoming report has changed +1.6% over the past month to $2.22. Compared to the company's year-ago EPS, this represents a change of +29.1%. Packaging Corp. currently boasts a Zacks Rank of #3 (Hold).

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

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