TopBuild (BLD) shares soared 6.1% in the last trading session to close at $316.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.1% gain over the past four weeks.
Shares of this installer and distributor of insulation and other building products are likely to have been boosted by it retaining its 2025 net sales and adjusted EBITDA guidance amid a modest sales decline and ongoing macro headwinds. Moreover, the investors’ sentiments are likely to have gained on a balanced capital allocation approach, indicating accretive inorganic investments and ensuring shareholder returns.
This insulation products company is expected to post quarterly earnings of $5.10 per share in its upcoming report, which represents a year-over-year change of -5.9%. Revenues are expected to be $1.29 billion, down 5.5% 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 TopBuild, 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 BLD 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 >>>>
TopBuild is part of the Zacks Building Products - Miscellaneous industry. Armstrong World Industries (AWI), another stock in the same industry, closed the last trading session 0.6% higher at $152.18. AWI has returned -2.5% in the past month.
Armstrong World Industries' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.74. Compared to the company's year-ago EPS, this represents a change of +7.4%. Armstrong World Industries currently boasts a Zacks Rank of #3 (Hold).
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
TopBuild Corp. (BLD): Free Stock Analysis Report Armstrong World Industries, Inc. (AWI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
