Westport (WPRT) Soars 8.5%: Is Further Upside Left in the Stock?

Westport Innovations (WPRT) shares soared 8.5% in the last trading session to close at $6.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 4.2% loss over the past four weeks.

Westport rallied yesterday after it announced a methanol High Pressure Direct Injection (HPDI) project with a leading marine power solutions supplier, marking the HPDI system’s debut in marine applications. This marks a pivotal moment in the company’s diversification beyond LNG and hydrogen, demonstrating the versatility of its technology.

This maker of natural-gas engine technology is expected to post quarterly loss of $0.62 per share in its upcoming report, which represents a year-over-year change of +38%. Revenues are expected to be $82 million, up 5.1% 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 Westport, 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 WPRT 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 >>>>

Westport is a member of the Zacks Automotive – Original Equipment industry. One other stock in the same industry, Autoliv, Inc. (ALV), finished the last trading session 0.5% higher at $112.87. ALV has returned 5.4% over the past month.

For Autoliv, Inc. , the consensus EPS estimate for the upcoming report has changed -21.8% over the past month to $1.43. This represents a change of +58.9% from what the company reported a year ago. Autoliv, Inc. currently has a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report