Avient (AVNT) shares soared 13.7% in the last trading session to close at $32.89. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 28.1% loss over the past four weeks.
The rally in AVNT was fueled by a broader rise in material stocks after President Trump paused reciprocal tariffs for most countries for 90 days.
This maker of resins used in plastic pipe and other products is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $839.69 million, up 1.3% 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 Avient, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AVNT 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 >>>>
Avient belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Dow Inc. (DOW), closed the last trading session 15.7% higher at $29.86. Over the past month, DOW has returned -29.6%.
For Dow Inc. , the consensus EPS estimate for the upcoming report has changed -32% over the past month to $0.04. This represents a change of -92.9% from what the company reported a year ago. Dow Inc. currently has a Zacks Rank of #5 (Strong Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Avient Corporation (AVNT) : Free Stock Analysis Report
Dow Inc. (DOW) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.