Custom Truck One Source, Inc. (CTOS) shares soared 9.1% in the last trading session to close at $5.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 17.3% loss over the past four weeks.
Optimism over continued market strength, sales order backlog, supply chain initiatives and outlook for the rental fleet seems to have driven the stock. Custom Truck, which offers specialty equipment rental services to utilities, energy, telecom and rail industries among others, is riding on increased demand for its offerings. Investors are also appreciative about the firm’s latest acquisition of HiRail Leasing Group, which has strengthened CTOS’ railroad-focused equipment offerings and bolstered foothold in the Canadian market. Based on the aforementioned tailwinds, Custom Truck forecasts full year revenues in the range of $1.57-$1.75 billion, implying year over year growth of 6-18% at the midpoint of the guidance.
This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +95.5%. Revenues are expected to be $379.71 million, up 1.2% 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 Custom Truck One Source, Inc., 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 CTOS 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 >>>>
Custom Truck One Source, Inc. belongs to the Zacks Automotive – Original Equipment industry. Another stock from the same industry, Westport Innovations (WPRT), closed the last trading session 4.6% higher at $1.13. Over the past month, WPRT has returned -7.7%.
For Westport
, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. This represents a change of -185.7% from what the company reported a year ago. Westport currently has a Zacks Rank of #3 (Hold).
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