Acerinox (ANIOY) Surges 8.9%: Is This an Indication of Further Gains?

Acerinox (ANIOY) shares ended the last trading session 8.9% higher at $6.10. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's no gain, no loss over the past four weeks.

The rally in ANIOY, which has a significant exposure to the U.S. market, appears to reflect the Trump administration’s plan to double steel import tariffs to 50%. The move is a positive for Acerinox, given that the United States is its main market.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +7.7%. Revenues are expected to be $1.68 billion, up 20.3% 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 Acerinox, 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 ANIOY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Acerinox is part of the Zacks Steel - Producers industry. Commercial Metals (CMC), another stock in the same industry, closed the last trading session 0.7% lower at $48.88. CMC has returned 7.9% in the past month.

For Commercial Metals

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

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