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Strength Seen in Constellium (CSTM): Can Its 13.8% Jump Turn into More Strength?

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Constellium (CSTM - Free Report) shares ended the last trading session 13.8% higher at $13.60. 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 27.8% loss over the past four weeks.

Shares of Constellium have spiked following its announcement that it has received the highest Platinum rating from EcoVadis twice in a row.
This is a recognition of the company’s efforts to deliver on its sustainability targets.

EcoVadis, a leading provider of business sustainability ratings, has placed CSTM in the top 1% of the 90,000 companies assessed by it worldwide.

This aluminum company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -51.1%. Revenues are expected to be $2.35 billion, up 28.4% 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 Constellium, 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 CSTM 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 >>>>

Constellium belongs to the Zacks Metal Products - Distribution industry. Another stock from the same industry, Reliance Steel (RS - Free Report) , closed the last trading session 5.7% higher at $172.79. Over the past month, RS has returned -17.9%.

For Reliance Steel, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $9.02. This represents a change of +78.3% from what the company reported a year ago. Reliance Steel currently has a Zacks Rank of #1 (Strong Buy).


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