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SiteOne Landscape (SITE) Surges 9.0%: Is This an Indication of Further Gains?

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SiteOne Landscape (SITE - Free Report) shares rallied 9% in the last trading session to close at $114.18. 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 15.8% loss over the past four weeks.

SiteOne Landscape recently acquired Green Trade Nursery of Georgia (Green Trad), a wholesale distributor of nursery products with one location in Jasper, GA, north of Atlanta. SiteOne continues to expand the number of markets in which it offers the full range of landscape products and services to landscape professionals. This marks SiteOne Landscape’s second acquisition this year and the 100th since it became an independent company in 2013. 

This company is expected to post quarterly loss of $0.50 per share in its upcoming report, which represents a year-over-year change of -16.3%. Revenues are expected to be $937.3 million, up 3.6% 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 SiteOne Landscape, the consensus EPS estimate for the quarter has been revised 1.3% 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 SITE 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 >>>>

SiteOne Landscape is part of the Zacks Industrial Services industry. Hudson Technologies (HDSN - Free Report) , another stock in the same industry, closed the last trading session 6.8% higher at $5.63. HDSN has returned -12.9% in the past month.

For Hudson Tech, the consensus EPS estimate for the upcoming report has changed -19.4% over the past month to $0.01. This represents a change of -95% from what the company reported a year ago. Hudson Tech currently has a Zacks Rank of #4 (Sell).


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