Strength Seen in Simpson Manufacturing (SSD): Can Its 4.4% Jump Turn into More Strength?

Simpson Manufacturing (SSD) shares soared 4.4% in the last trading session to close at $200.14. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.7% gain over the past four weeks.Simpson Manufacturing shares advanced after stronger-than-expected U.S. pending home sales data pointed to improving housing-market conditions. Investor sentiment was further supported by a slight decline in mortgage rates to 6.47% from 6.52% in the prior week, according to Freddie Mac, improving housing affordability expectations. The stock also benefited from a broader market rally fueled by easing geopolitical tensions and progress in international peace negotiations.This building materials company is expected to post quarterly earnings of $2.71 per share in its upcoming report, which represents a year-over-year change of +9.7%. Revenues are expected to be $656.4 million, up 4% 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 Simpson Manufacturing, 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 SSD going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Simpson Manufacturing is a member of the Zacks Building Products - Miscellaneous industry. One other stock in the same industry, Limbach (LMB), finished the last trading session 0.2% lower at $80.15. LMB has returned 9.9% over the past month.For Limbach, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1. This represents a change of +7.5% from what the company reported a year ago. Limbach currently has 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