Installed Building Products (IBP) shares soared 5.7% in the last trading session to close at $303.31. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.7% gain over the past four weeks.
Shares of Installed Building Products or IBP have surged after the company announced three acquisitions—Thermo-Tech Mechanical Insulation, Biomax Spray Foam Insulation, and CKV Finished Products. The deals expanded IBP’s national footprint, strengthen its presence across the United States and further diversified revenues and cash flows across attractive building product categories.
This residential insulation installer is expected to post quarterly earnings of $2.83 per share in its upcoming report, which represents a year-over-year change of -2.4%. Revenues are expected to be $739.72 million, down 1.4% 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 Installed Building Products, 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 IBP 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 >>>>
Installed Building Products is part of the Zacks Building Products - Miscellaneous industry. TopBuild (BLD), another stock in the same industry, closed the last trading session 3.5% higher at $480.56. BLD has returned 4.9% in the past month.
For TopBuild, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.36. This represents a change of -15% from what the company reported a year ago. TopBuild currently has a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
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