LCI (LCII) shares soared 4.4% in the last trading session to close at $100.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.1% loss over the past four weeks.
LCI shares surged on strong momentum across its OEM markets. Operating margin expansion in the OEM segment was driven primarily by higher selling prices, along with cost-saving initiatives such as manufacturing footprint optimization and improved material sourcing. Looking ahead, LCI expects to expand its presence across all four OEM markets through 2026.
This recreational vehicle parts supplier is expected to post quarterly earnings of $2.78 per share in its upcoming report, which represents a year-over-year change of +16.3%. Revenues are expected to be $1.14 billion, up 3.3% 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 LCI, 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 LCII going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
LCI is part of the Zacks Automotive - Original Equipment industry. Adient (ADNT), another stock in the same industry, closed the last trading session 9.1% lower at $18.18. ADNT has returned -12.5% in the past month.
For Adient, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. This represents a change of +15.6% from what the company reported a year ago. Adient currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).