Euroseas Ltd. (NASDAQ:ESEA) shares rallied 6.4% in the last trading session to close at $31.50. 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 18.9% gain over the past four weeks.
The uptick is primarily owing to the optimism surrounding the dry bulk and container shipping markets. Improvement in average charter rates of the company’s vessels, among other factors are driving Euroseas' revenues. The company's healthy cash flow-generating ability is an added positive.
This company is expected to post quarterly earnings of $2.99 per share in its upcoming report, which represents a year-over-year change of +1968.8%. Revenues are expected to be $36.88 million, up 194.3% 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 Ltd., the consensus EPS estimate for the quarter has been revised 9.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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 >>>>
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Euroseas Ltd. (ESEA): Free Stock Analysis Report
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