Strength Seen in Alamo Group (ALG): Can Its 3.3% Jump Turn into More Strength?

Alamo Group (ALG) shares ended the last trading session 3.3% higher at $161.35. 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 2.6% gain over the past four weeks.Shares of Alamo Group have been gaining since the U.S. government's decision to reduce tariffs on agricultural equipment, including combines and harvesters, from 25% to 15%. The tariff reduction, which will remain in place through the end of 2027, should lower cost pressures, and support the company's near-term investment and growth initiatives.  This maker of road maintenance, industrial and farm equipment is expected to post quarterly earnings of $2.74 per share in its upcoming report, which represents a year-over-year change of +6.6%. Revenues are expected to be $441.27 million, up 5.3% 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 Alamo Group, 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 ALG 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 >>>>Alamo Group is a member of the Zacks Manufacturing - Farm Equipment industry. One other stock in the same industry, Agco (AGCO), finished the last trading session 1.5% higher at $113.66. AGCO has returned -2.4% over the past month.Agco's consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.49. Compared to the company's year-ago EPS, this represents a change of +10.4%. Agco currently boasts a Zacks Rank of #3 (Hold).Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks