Adient (ADNT) shares soared 6% in the last trading session to close at $40.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 13.7% gain over the past four weeks.
The share price is likely to have got a boost from a rating upgrade by BofA Securities. BofA analyst John Murphy upgraded Adient from “Neutral” to “Buy” yesterday, raising the price target on the stock from $41/share to $52.
This automotive seating and interiors supplier is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +223.7%. Revenues are expected to be $3.73 billion, up 7.1% 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 Adient, 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 ADNT 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 >>>>
Adient is part of the Zacks Automotive – Original Equipment industry. Wabash National (WNC), another stock in the same industry, closed the last trading session 1.1% higher at $24.03. WNC has returned -0.5% in the past month.
Wabash’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.72. Compared to the company’s year-ago EPS, this represents a change of +928.6%. Wabash currently boasts a Zacks Rank of #2 (Buy).
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Adient (ADNT) : Free Stock Analysis Report
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