Dana (DAN) shares soared 14.9% in the last trading session to close at $15.20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12% gain over the past four weeks.
Dana rallied roughly 15% Friday, hitting a 52-week high as investors cheered its $300 million cost-cutting plan and potential Off-Highway business sale. With a leaner two-segment structure, the company is positioning for long-term growth, aiming to unlock shareholder value and enhance financial flexibility through restructuring and operational improvements.
This automotive equipment supplier is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +212.5%. Revenues are expected to be $2.37 billion, down 5% 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 Dana, 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 DAN 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 >>>>
Dana belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Custom Truck One Source, Inc. (CTOS), closed the last trading session 2.2% lower at $5.25. Over the past month, CTOS has returned 9.8%.
For Custom Truck One Source
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This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpDana Incorporated (DAN) : Free Stock Analysis Report
Custom Truck One Source, Inc. (CTOS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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