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Strength Seen in Middleby (MIDD): Can Its 5.5% Jump Turn into More Strength?

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Middleby (MIDD - Free Report) shares rallied 5.5% in the last trading session to close at $131.61. 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 1.6% gain over the past four weeks.

Middleby’s rally is largely driven by optimism regarding the company’s focus on launching new products and upgrading the existing ones per the industry trend. Also, the acquisition of Germany-based GBT GmbH Bakery Technology bodes well.

This food preparation equipment company is expected to post quarterly earnings of $2.27 per share in its upcoming report, which represents a year-over-year change of -8.1%. Revenues are expected to be $988.88 million, down 4.9% 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 Middleby, the consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MIDD 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 >>>>

Middleby belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Helios Technologies (HLIO - Free Report) , closed the last trading session 0.7% higher at $44.67. Over the past month, HLIO has returned -8%.

Helios Technologies' consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $0.61. Compared to the company's year-ago EPS, this represents a change of -24.7%. Helios Technologies currently boasts a Zacks Rank of #5 (Strong Sell).


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