Perimeter Solutions, SA (PRM) shares soared 5.4% in the last trading session to close at $12.63. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.1% loss over the past four weeks.

PRM’s gain appears to reflect optimism about a recovery in its major end markets. Favorable industry trends are expected to continue to drive demand for fire retardant products. The company’s Specialty Products segment is also seeing strong growth aided by a recovery from de-stocking activities and increased purchases by high-quality specialty chemicals customers.

This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of -11.1%. Revenues are expected to be $64.85 million, up 9.1% 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 Perimeter Solutions, SA, 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 PRM 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 >>>>

Perimeter Solutions, SA is a member of the Zacks Chemical - Specialty industry. One other stock in the same industry, Axalta Coating Systems (AXTA), finished the last trading session 1.6% lower at $33.74. AXTA has returned -12.2% over the past month.

For Axalta Coating Systems , the consensus EPS estimate for the upcoming report has changed -4.3% over the past month to $0.51. This represents a change of +18.6% from what the company reported a year ago. Axalta Coating Systems currently has a Zacks Rank of #4 (Sell).

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