Strength Seen in ABB (ABBNY): Can Its 6.0% Jump Turn into More Strength?

ABB Ltd ABBNY shares ended the last trading session 6% higher at $104.45. 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 7.5% loss over the past four weeks.ABB’s rally is largely due to optimism over strong momentum in the Motion segment, driven by strength in commercial building HVAC, power generation, and Food & beverage markets. Also, solid customer activities in major markets, including utilities and land-based infrastructure, bode well for the company.This industrial automation company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +19.1%. Revenues are expected to be $9.36 billion, up 5.2% 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 ABB, 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 ABBNY 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 >>>>ABB belongs to the Zacks Manufacturing - Electronics industry. Another stock from the same industry, Murata Manufacturing Inc. MRAAY, closed the last trading session 7.8% higher at $29.2. Over the past month, MRAAY has returned 39.6%.For Murata Manufacturing, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.11. This represents a change of +22.2% from what the company reported a year ago. Murata Manufacturing currently has a Zacks Rank of #3 (Hold).Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks