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Beazer Homes (BZH) shares ended the last trading session 7.1% higher at $20.37. 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 18% loss over the past four weeks.
Homebuilding stocks like Beazer Homes surged on Friday as investors cheered a favorable policy outcome for the housing industry. Tariff exceptions for Canada and Mexico "amount to a major win" for homebuilders, the National Association of Home Builders said in a statement.
This homebuilder is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -77%. Revenues are expected to be $545.2 million, up 0.7% 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 Beazer, 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 BZH 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 >>>>
Beazer is a member of the Zacks Building Products - Home Builders industry. One other stock in the same industry, PulteGroup (PHM), finished the last trading session 3.6% higher at $101.24. PHM has returned -9.7% over the past month.
For PulteGroup , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.48. This represents a change of -13.6% from what the company reported a year ago. PulteGroup currently has a Zacks Rank of #4 (Sell).
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Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).