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Mistras (MG) Surges 5.7%: Is This an Indication of Further Gains?

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Mistras (MG - Free Report) shares ended the last trading session 5.7% higher at $10.58. 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 0.7% loss over the past four weeks.

Mistras is benefiting from diversified revenue gains across all segments, cost discipline through Project Phoenix, and strong performance in aerospace, defense, and energy markets.

This engineering services company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +128.6%. Revenues are expected to be $180.53 million, down 2.1% 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 Mistras, the consensus EPS estimate for the quarter has been revised 29.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MG 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 >>>>

Mistras belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Universal Electronics (UEIC - Free Report) , closed the last trading session 2.4% lower at $6.44. Over the past month, UEIC has returned -28.4%.

Universal Electronics' consensus EPS estimate for the upcoming report has changed -1500% over the past month to -$0.15. Compared to the company's year-ago EPS, this represents a change of +21.1%. Universal Electronics currently boasts a Zacks Rank of #3 (Hold).


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