Hyster-Yale (HY) Surges 5.2%: Is This an Indication of Further Gains?

Hyster-Yale (HY) shares soared 5.2% in the last trading session to close at $37.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.9% loss over the past four weeks.

Hyster-Yale shares gained after the United States and Iran announced an interim agreement to end hostilities and reopen the Strait of Hormuz. Earlier this year, the company revised its 2026 outlook to account for additional Section 232 tariffs and the ongoing Iran conflict, both of which had driven higher material costs, supply-chain disruptions and uncertainty around demand, product availability and margins.

The stock's rally reflects growing investor confidence that easing geopolitical tensions could alleviate some of these pressures and support a stronger operating environment for Hyster-Yale and lead to improved results.

This maker of lift trucks and aftermarket parts is expected to post quarterly loss of $2.05 per share in its upcoming report, which represents a year-over-year change of -1364.3%. Revenues are expected to be $804.62 million, down 15.9% 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 Hyster-Yale, 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 HY 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 >>>>

Hyster-Yale is a member of the Zacks Manufacturing - Construction and Mining industry. One other stock in the same industry, Terex (TEX), finished the last trading session 1.6% higher at $63.8. TEX has returned -1.8% over the past month.

Terex's consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $1.26. Compared to the company's year-ago EPS, this represents a change of -15.4%. Terex currently boasts a Zacks Rank of #3 (Hold).

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

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