Back to top

Image: Bigstock

Strength Seen in Tecnoglass (TGLS): Can Its 21.6% Jump Turn into More Strength?

Read MoreHide Full Article

Tecnoglass (TGLS - Free Report) shares ended the last trading session 21.6% higher at $49.89. 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 23.7% loss over the past four weeks.

Tecnoglass stock rally comes after the company revealed its intention to undertake a strategic review of alternatives for its business. It plans to hire outside financial and legal advisors for the job. The company did not suggest a specific timeline for the completion of the review process. It expects this action will be in the company’s best interest. TGLS also reaffirmed its 2024 financial outlook, as announced on May 9, 2024.

This architectural glass maker is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of -27.7%. Revenues are expected to be $219.51 million, down 2.6% 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 Tecnoglass, 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 TGLS 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 >>>>

Tecnoglass belongs to the Zacks Building Products - Retail industry. Another stock from the same industry, Beacon Roofing Supply (BECN - Free Report) , closed the last trading session 1.4% lower at $89.18. Over the past month, BECN has returned -6.3%.

Beacon Roofing's consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $2.83. Compared to the company's year-ago EPS, this represents a change of +6.4%. Beacon Roofing currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Beacon Roofing Supply, Inc. (BECN) - free report >>

Tecnoglass Inc. (TGLS) - free report >>

Published in