Strength Seen in NWPX Infrastructure (NWPX): Can Its 3.5% Jump Turn into More Strength?

NWPX Infrastructure (NWPX) shares rallied 3.5% in the last trading session to close at $143.53. 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 18% gain over the past four weeks.

Strong project execution and improving profitability across both business segments are driving the stock higher. Record backlog levels and healthy order momentum reinforce confidence in the company’s ability to deliver sustained growth, stronger earnings and continued business expansion in the coming quarters.

This steel pipe maker is expected to post quarterly earnings of $1.33 per share in its upcoming report, which represents a year-over-year change of +46.2%. Revenues are expected to be $154.55 million, up 16% 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 NWPX Infrastructure, the consensus EPS estimate for the quarter has been revised 1.4% 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 NWPX 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 >>>>

NWPX Infrastructure is a member of the Zacks Steel - Speciality industry. One other stock in the same industry, Carpenter Technology (CRS), finished the last trading session 0.5% higher at $580.95. CRS has returned 27.4% over the past month.

For Carpenter, the consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $3.02. This represents a change of +36.7% from what the company reported a year ago. Carpenter currently has a Zacks Rank of #3 (Hold).

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

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