Strength Seen in Shimmick Corporation (SHIM): Can Its 8.3% Jump Turn into More Strength?

Shimmick Corporation (SHIM) shares soared 8.3% in the last trading session to close at $5.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 51.1% gain over the past four weeks.

Shimmick stock has risen on improving sentiment around execution, profitability and overall risk-reward, supported by strong backlog growth, better margins from higher-quality projects and a shift toward core, profitable infrastructure work, though legacy project risks and execution challenges still persist.

This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +86.4%. Revenues are expected to be $131.3 million, up 7.5% 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 Shimmick Corporation, 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 SHIM 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 >>>>

Shimmick Corporation is part of the Zacks Engineering - R and D Services industry. Tetra Tech (TTEK), another stock in the same industry, closed the last trading session 0.9% higher at $31.66. TTEK has returned -1.2% in the past month.

For Tetra, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. This represents a change of -6.1% from what the company reported a year ago. Tetra 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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