Hudson Technologies (HDSN) shares rallied 8.9% in the last trading session to close at $7.93. 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 6.9% loss over the past four weeks.
Hudson Tech shares climbed as an analyst at B. Riley Securities upgraded the stock from Neutral to Buy and raised the price target from $7.50 to $9.00. Per the analyst, hydrofluorocarbon (HFC) pricing appears to be firming as the summer season begins. Pricing has also been impacted by tariff-related supply constraints, despite added cost pressures, and tightening availability of newer refrigerants such as 454B and R-32, which are fueling aftermarket demand.
Hudson Tech’s leadership position (around 35% U.S. reclamation share), along with its solid balance sheet and normalized inventory levels, could support further upside if the current HFC market momentum holds.
This refrigerant services company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $69.13 million, down 8.2% 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 Hudson Tech, 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 HDSN 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 >>>>
Hudson Tech belongs to the Zacks Industrial Services industry. Another stock from the same industry, MSC Industrial (MSM), closed the last trading session 1.3% higher at $82.08. Over the past month, MSM has returned -0.6%.
MSC Industrial's consensus EPS estimate for the upcoming report has changed +1.1% over the past month to $1.03. Compared to the company's year-ago EPS, this represents a change of -22.6%. MSC Industrial currently boasts a Zacks Rank of #2 (Buy).
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Hudson Technologies, Inc. (HDSN): Free Stock Analysis Report ArcelorMittal (MT): Free Stock Analysis Report MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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