We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Olympic Steel (ZEUS) Soars 8.8%: Is Further Upside Left in the Stock?
Read MoreHide Full Article
Olympic Steel (ZEUS - Free Report) shares rallied 8.8% in the last trading session to close at $36.59. 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 14.2% gain over the past four weeks.
Optimism over improving market conditions and strengthening demand and metal pricing are driving the stock higher. The company is benefiting from strong demand from its end markets, higher metal prices and its actions to control operating expenses. It is witnessing solid demand in automotive, equipment, agriculture and construction end-markets. Strong demand coupled with limited supply is also driving metal prices.
Price and Consensus
This steel maker is expected to post quarterly earnings of $1.37 per share in its upcoming report, which represents a year-over-year change of +460.5%. Revenues are expected to be $516.4 million, up 108% 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 Olympic Steel, the consensus EPS estimate for the quarter has been revised 28% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ZEUS going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Olympic Steel (ZEUS) Soars 8.8%: Is Further Upside Left in the Stock?
Olympic Steel (ZEUS - Free Report) shares rallied 8.8% in the last trading session to close at $36.59. 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 14.2% gain over the past four weeks.
Optimism over improving market conditions and strengthening demand and metal pricing are driving the stock higher. The company is benefiting from strong demand from its end markets, higher metal prices and its actions to control operating expenses. It is witnessing solid demand in automotive, equipment, agriculture and construction end-markets. Strong demand coupled with limited supply is also driving metal prices.
Price and Consensus
This steel maker is expected to post quarterly earnings of $1.37 per share in its upcoming report, which represents a year-over-year change of +460.5%. Revenues are expected to be $516.4 million, up 108% 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 Olympic Steel, the consensus EPS estimate for the quarter has been revised 28% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ZEUS 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 >>>>