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CECO (CECE) Moves 9.6% Higher: Will This Strength Last?

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CECO Environmental shares rallied 9.6% in the last trading session to close at $11.51. 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 15.5% gain over the past four weeks.

The stock rose due to its shift from a business focused on cyclical, longer-cycle and project-based energy markets to a vertical, shorter-cycle profile with end-markets benefiting from ESG tailwinds for clean air and clean water.

This maker of air pollution controls and industrial ventilation systems is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +1300%. Revenues are expected to be $97.07 million, up 21.4% 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 CECO, 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 CECE 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 >>>>

CECO belongs to the Zacks Pollution Control industry. Another stock from the same industry, Donaldson (DCI - Free Report) , closed the last trading session 2.6% higher at $54.54. Over the past month, DCI has returned 7.1%.

For Donaldson, the consensus EPS estimate for the upcoming report has changed -0.9% over the past month to $0.70. This represents a change of +14.8% from what the company reported a year ago. Donaldson currently has a Zacks Rank of #3 (Hold).


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