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Strength Seen in HITACHI CONSTR (HTCMY): Can Its 5.1% Jump Turn into More Strength?

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HITACHI CONSTR (HTCMY - Free Report) shares ended the last trading session 5.1% higher at $43.97. 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 9.2% loss over the past four weeks.

Shares of Hitachi have gained ahead of its first quarter 2023 earnings release. The company is expected to gain on strong demand for new mining machinery backed by favorable commodity prices. Demand for hydraulic excavators in major regions other than China has also remained strong and is likely to reflect on its results.

This company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of +36.1%. Revenues are expected to be $1.91 billion, down 8.3% 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 HITACHI CONSTR, 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 HTCMY 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 >>>>

HITACHI CONSTR is a member of the Zacks Manufacturing - Construction and Mining industry. One other stock in the same industry, The Manitowoc Company, Inc. (MTW - Free Report) , finished the last trading session 1.4% lower at $10.83. MTW has returned 5.8% over the past month.

The Manitowoc Company, Inc.'s consensus EPS estimate for the upcoming report has changed -6% over the past month to $0.36. Compared to the company's year-ago EPS, this represents a change of -40%. The Manitowoc Company, Inc. currently boasts a Zacks Rank of #5 (Strong Sell).


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