Ingevity (NGVT) shares soared 12% in the last trading session to close at $37.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.6% loss over the past four weeks.
NGVT’s gain appears to reflect a recovery in its shares from the recent slump following its announcement of the CEO transition. NGVT, last Thursday, announced the departure of John Fortson as president and CEO and from the board of directors of the company, effective Oct. 2, 2024. Its board has appointed current board director, Luis Fernandez-Moreno as interim president and CEO while the company searches for a permanent replacement.
This company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of -38%. Revenues are expected to be $375.8 million, down 15.7% 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 Ingevity, 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 NGVT 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 >>>>
Ingevity is part of the Zacks Chemical - Specialty industry. Celanese (CE), another stock in the same industry, closed the last trading session 2.1% higher at $136.67. CE has returned 10.3% in the past month.
For Celanese , the consensus EPS estimate for the upcoming report has changed -1% over the past month to $2.89. This represents a change of +15.6% from what the company reported a year ago. Celanese currently has a Zacks Rank of #5 (Strong Sell).
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