Strength Seen in DSV (DSDVY): Can Its 5.5% Jump Turn into More Strength?

DSV (DSDVY) shares soared 5.5% in the last trading session to close at $124.2. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.3% loss over the past four weeks.

Shares of DSDVY have been performing well lately, gaining more than 2% in the past three months. The company is well-served by the acquisition of Schenker, which has formed a world-leading player in transport and logistics.

This company is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of +22.2%. Revenues are expected to be $10.86 billion, up 15.2% 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 DSV, the consensus EPS estimate for the quarter has been revised 1.2% 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 DSDVY 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 >>>>

DSV is a member of the Zacks Transportation - Services industry. One other stock in the same industry, Expeditors International (EXPD), finished the last trading session 1.1% higher at $166.44. EXPD has returned 5.7% over the past month.

Expeditors International's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.56. Compared to the company's year-ago EPS, this represents a change of +16.4%. Expeditors International currently boasts a Zacks Rank of #1 (Strong Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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