BRP Inc. (DOO) shares soared 7.8% in the last trading session to close at $54.9. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18% loss over the past four weeks.
BRP’s shares rose on the strength of its underlying fundamentals. Strong demand for off-road vehicles and personal watercraft, new model launches and debt reduction efforts are boosting BRP’s outlook.
This company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of +175.8%. Revenues are expected to be $1.54 billion, up 18.3% 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 BRP, the consensus EPS estimate for the quarter has been revised 21% 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 DOO 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 >>>>
BRP belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Dauch (DCH), closed the last trading session 1.2% lower at $5.8. Over the past month, DCH has returned 13.1%.
Dauch's consensus EPS estimate for the upcoming report has changed +4.7% over the past month to -$0.03. Compared to the company's year-ago EPS, this represents a change of -133.3%. Dauch currently boasts a Zacks Rank of #3 (Hold).
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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.
