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Strength Seen in Costamare (CMRE): Can Its 5.6% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

Costamare (CMRE) shares soared 5.6% in the last trading session to close at $16.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.1% gain over the past four weeks.

CMRE shares are being aided by the improvement in market sentiment about the dry bulk sector. Strong capesize demand. Factors like a build-up of iron ore inventories in China have resulted in higher capesize freight rates. Owing to the bullishness surrounding the dry bulk sector, CMRE shares have gained 57% year to date.

This shipping company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +37.5%. Revenues are expected to be $368.67 million, up 0.3% 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.

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For Costamare, 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 CMRE 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 >>>>

Costamare belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Danaos (DAC), closed the last trading session 2% higher at $91.76. Over the past month, DAC has returned 4.3%.

For Danaos , the consensus EPS estimate for the upcoming report has changed -9% over the past month to $7.04. This represents a change of -1.4% from what the company reported a year ago. Danaos currently has a Zacks Rank of #3 (Hold).

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Costamare Inc. (CMRE) : Free Stock Analysis Report

Danaos Corporation (DAC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research