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Valmont (VMI) Moves 4.7% Higher: Will This Strength Last?

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Valmont Industries (VMI - Free Report) shares ended the last trading session 4.7% higher at $298.97. 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 18.2% loss over the past four weeks.

Valmont shares gained as it provided an update on the estimated impacts of U.S. tariffs on imports from Mexico, Canada and China, and imported steel and aluminum. Adding to its discussions from its fourth-quarter 2024 earnings call on Feb. 18, Valmont detailed its mitigation strategies, which include pricing actions, cost control, productivity improvements and supply-chain optimizations. 

Aided by these initiatives, Valmont expects to be cost-neutral on a dollar basis in the second half of fiscal 2025. This forecast is applicable even if United States Mexico-Canada Agreement (USMCA) tariff exclusions are not granted for its imports from Mexico and Canada. The company also highlighted that the majority of products shipped to U.S. customers are manufactured at one of 24 facilities across the United States. It added that this forecast does not consider the impacts of future additional U.S. tariffs or any retaliatory tariffs.

This infrastructure equipment maker is expected to post quarterly earnings of $4.23 per share in its upcoming report, which represents a year-over-year change of -2.1%. Revenues are expected to be $977.37 million, down 0.1% 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 Valmont, the consensus EPS estimate for the quarter has been revised 1.6% 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 VMI 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 >>>>

Valmont belongs to the Zacks Steel - Pipe and Tube industry. Another stock from the same industry, Tenaris S.A. (TS - Free Report) , closed the last trading session 0.7% higher at $39.63. Over the past month, TS has returned 4.3%.

Tenaris' consensus EPS estimate for the upcoming report has changed +17.3% over the past month to $0.79. Compared to the company's year-ago EPS, this represents a change of -37.8%. Tenaris currently boasts a Zacks Rank of #3 (Hold).


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