Rogers Corp. (ROG) Moves 10.7% Higher: Will This Strength Last?

Rogers Corp. ROG shares rallied 10.7% in the last trading session to close at $152.99. 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 12.3% gain over the past four weeks.

Rogers Corp. is benefiting from strong demand across its core markets, targeted high-growth opportunities, and deep customer relationships, which are expected to support revenue growth and margin expansion. The company is targeting revenues of $1.5 billion, an adjusted EBITDA margin of 26%, and adjusted EPS of $14 by 2030.

This specialty materials company is expected to post quarterly earnings of $1.20 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $238 million, up 10.2% 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 Rogers Corp., 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 ROG 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 >>>>

Rogers Corp. belongs to the Zacks Electronics - Miscellaneous Components industry. Another stock from the same industry, LGL Group, Inc. (The) LGL, closed the last trading session 0.1% higher at $6.86. Over the past month, LGL has returned -6.9%.

For The LGL Group, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. This represents a change of -121.4% from what the company reported a year ago. The LGL Group 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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