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Advanced Drainage (WMS) Surges 7.1%: Is This an Indication of Further Gains?
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Advanced Drainage Systems (WMS - Free Report) shares soared 7.1% in the last trading session to close at $137.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.8% gain over the past four weeks.
The stock price of Advanced Drainage Systems experienced a notable increase following the Federal Reserve's decision to maintain the interest rate benchmark within the range of 5.25% to 5.5%. Additionally, the Federal Open Market Committee foresees a minimum of three rate cuts in 2024. This macroeconomic tailwind is likely to enhance the attractiveness of the residential market demand for the company in the future.
This maker of water drainage systems and pipes is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of -6.1%. Revenues are expected to be $625.61 million, down 4.5% 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 Advanced Drainage, 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 WMS going forward to see if this recent jump can turn into more strength down the road.
Advanced Drainage belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, United Rentals (URI - Free Report) , closed the last trading session 7.4% higher at $569.43. Over the past month, URI has returned 10.6%.
United Rentals' consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $11.45. Compared to the company's year-ago EPS, this represents a change of +17.6%. United Rentals currently boasts a Zacks Rank of #3 (Hold).
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Advanced Drainage (WMS) Surges 7.1%: Is This an Indication of Further Gains?
Advanced Drainage Systems (WMS - Free Report) shares soared 7.1% in the last trading session to close at $137.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.8% gain over the past four weeks.
The stock price of Advanced Drainage Systems experienced a notable increase following the Federal Reserve's decision to maintain the interest rate benchmark within the range of 5.25% to 5.5%. Additionally, the Federal Open Market Committee foresees a minimum of three rate cuts in 2024. This macroeconomic tailwind is likely to enhance the attractiveness of the residential market demand for the company in the future.
This maker of water drainage systems and pipes is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of -6.1%. Revenues are expected to be $625.61 million, down 4.5% 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 Advanced Drainage, 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 WMS 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 >>>>
Advanced Drainage belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, United Rentals (URI - Free Report) , closed the last trading session 7.4% higher at $569.43. Over the past month, URI has returned 10.6%.
United Rentals' consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $11.45. Compared to the company's year-ago EPS, this represents a change of +17.6%. United Rentals currently boasts a Zacks Rank of #3 (Hold).