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Mayville Engineering (MEC) Soars 5.3%: Is Further Upside Left in the Stock?

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Mayville Engineering (MEC - Free Report) shares rallied 5.3% in the last trading session to close at $17.35. 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 1.4% loss over the past four weeks.

The positive inflation report on Jul 11, 2024, most likely induced bullish sentiments among investors. The Bureau of Labor Statistics revealed that the Consumer Price Index (CPI) for June 2024 increased by 3% year-on-year, the lowest level in over three years. Furthermore, this better-than-expected figure suggests the Federal Reserve may start cutting rates this year, moving closer to the 2% target.

This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -15%. Revenues are expected to be $160.38 million, up 15.4% 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 Mayville Engineering, 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 MEC 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 >>>>

Mayville Engineering belongs to the Zacks Engineering - R and D Services industry. Another stock from the same industry, Alfa Laval AB Unsponsored ADR (ALFVY - Free Report) , closed the last trading session 1% higher at $43.17. Over the past month, ALFVY has returned -8%.

Alfa Laval's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.46. Compared to the company's year-ago EPS, this represents a change of +31.4%. Alfa Laval currently boasts a Zacks Rank of #1 (Strong Buy).


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