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Euroseas Ltd. (ESEA) shares rallied 8.7% in the last trading session to close at $38.43. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 19.6% gain over the past four weeks.
The uptick followed the 90-day agreement between the United States and China to reduce tariffs. The development has rekindled hopes of easing global trade tensions. With shipping stocks like ESEA being responsible for transporting the majority of goods involved in world trade, positive trade-related news is a welcome development for the entire shipping industry.
This company is expected to post quarterly earnings of $3.41 per share in its upcoming report, which represents a year-over-year change of +28.2%. Revenues are expected to be $56.38 million, up 16.8% 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 Euroseas, 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 ESEA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Euroseas is part of the Zacks Transportation - Shipping industry. Knot Offshore (KNOP), another stock in the same industry, closed the last trading session 0.5% higher at $6.71. KNOP has returned 6.5% in the past month.
For Knot Offshore , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.14. This represents a change of -36.4% from what the company reported a year ago. Knot Offshore currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).