Ducommun (DCO) shares ended the last trading session 4.3% higher at $177.66. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.9% gain over the past four weeks.
Ducommun continues to benefit from favorable trends in both defense and commercial aerospace markets, supported by rising missile production, higher military aircraft demand and the ongoing recovery in commercial aircraft build rates. The company expects sustained momentum from key missile programs, including Patriot, as well as fixed-wing and rotorcraft platforms, backed by long-term procurement agreements and increased defense spending.
The company also highlighted improving production rates at major commercial aircraft manufacturers, easing inventory destocking and continued progress toward its Vision 2027 strategy. Combined with ongoing margin expansion initiatives, engineered product growth and available manufacturing capacity to support higher missile production, these factors strengthen Ducommun's growth outlook.
This aerospace industry supplier is expected to post quarterly earnings of $0.94 per share in its upcoming report, which represents a year-over-year change of +6.8%. Revenues are expected to be $213.67 million, up 5.6% 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 Ducommun, 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 DCO 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 >>>>
Ducommun is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, FTAI Aviation (FTAI), finished the last trading session 3.1% lower at $260.08. FTAI has returned 2.1% over the past month.
For FTAI Aviation, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.52. This represents a change of -3.2% from what the company reported a year ago. FTAI Aviation currently has 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.
