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Strength Seen in DMC Global (BOOM): Can Its 8.4% Jump Turn into More Strength?

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DMC Global (BOOM - Free Report) shares ended the last trading session 8.4% higher at $18.51. 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 28.9% loss over the past four weeks.

The stock jumped primarily on optimism surrounding strong customer demand in North America and international markets and strength across end-markets, such as commercial construction and high-end residential markets, thanks to continued increase in industrial production and manufacturing activities.

This diversified holding company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +1150%. Revenues are expected to be $157.55 million, up 134.5% 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 DMC Global, 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 BOOM 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 >>>>

DMC Global is part of the Zacks Industrial Services industry. MSC Industrial (MSM - Free Report) , another stock in the same industry, closed the last trading session 1.8% lower at $76.72. MSM has returned -9.5% in the past month.

For MSC Industrial, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.77. This represents a change of +40.5% from what the company reported a year ago. MSC Industrial currently has a Zacks Rank of #3 (Hold).


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