Adient (ADNT) shares soared 10% in the last trading session to close at $23.6. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.1% gain over the past four weeks.
Adient’s stock climbed after UBS raised its rating to buy from neutral. Frequent business wins bode well for the company’s prospects. In fiscal 2025, Adient landed $1.2 billion in new contracts in China, nearly 70% from domestic automakers. The company is also securing higher-margin business in Europe, positioning it for improved revenues and profitability there in the years ahead.
This automotive seating and interiors supplier is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -29.6%. Revenues are expected to be $3.46 billion, down 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 been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Adient belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, EVgo Inc. (EVGO), closed the last trading session 6.1% higher at $3.15. Over the past month, EVGO has returned -4.5%.
For EVgo, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.15. This represents a change of -36.4% from what the company reported a year ago. EVgo currently has a Zacks Rank of #3 (Hold).
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Adient (ADNT) : Free Stock Analysis Report
EVgo Inc. (EVGO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
