thyssenkrupp AG TKAMY shares rallied 5.9% in the last trading session to close at $12.37. 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 7.6% gain over the past four weeks.
thyssenkrupp’s rally is primarily driven by optimism over strong momentum in Marine Systems segment. Within the segment, TKAMY is seeing order growth, driven by addition of four submarines under the German-Norwegian 212CD program, along with two more submarines added to Singapore’s existing order. Also, project progress in the new construction business as well as in the marine electronics and software businesses bode well for it.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +322.2%. Revenues are expected to be $8.83 billion, up 5.7% 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 ThyssenKrupp, 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 TKAMY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ThyssenKrupp is part of the Zacks Steel - Producers industry. Ternium S.A. (TX), another stock in the same industry, closed the last trading session 2.5% higher at $43.37. TX has returned 10% in the past month.
For Ternium, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.5. This represents a change of +457.1% from what the company reported a year ago. Ternium currently has a Zacks Rank of #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ThyssenKrupp AG Sponsored ADR (TKAMY): Free Stock Analysis Report Ternium S.A. (TX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
