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Strength Seen in Montrose Environmental (MEG): Can Its 12.8% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

Montrose Environmental (MEG) shares soared 12.8% in the last trading session to close at $41.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.7% loss over the past four weeks.

The stock is benefitting from organic revenue growth in the Assessment, Permitting & Response, and Measurement & Analysis segments, primarily driven by higher demand for the company’s advisory services and positive performances in the lab and field services, particularly methane emissions and PFAS testing.

This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +107.9%. Revenues are expected to be $152.61 million, up 16.1% 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 Montrose Environmental, the consensus EPS estimate for the quarter has been revised 150% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MEG 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 >>>>

Montrose Environmental is a member of the Zacks Waste Removal Services industry. One other stock in the same industry, Clean Harbors (CLH), finished the last trading session 0.5% lower at $190.90. CLH has returned -0.8% over the past month.

For Clean Harbors , the consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $1.16. This represents a change of -14.7% from what the company reported a year ago. Clean Harbors currently has a Zacks Rank of #3 (Hold).

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Montrose Environmental Group, Inc. (MEG) : Free Stock Analysis Report

Clean Harbors, Inc. (CLH) : Free Stock Analysis Report

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Zacks Investment Research