Singapore markets close in 1 hour 45 minutes
  • Straits Times Index

    3,131.58
    -5.96 (-0.19%)
     
  • Nikkei

    27,049.47
    +178.20 (+0.66%)
     
  • Hang Seng

    22,375.11
    +145.59 (+0.65%)
     
  • FTSE 100

    7,268.17
    +9.85 (+0.14%)
     
  • BTC-USD

    20,891.43
    -428.46 (-2.01%)
     
  • CMC Crypto 200

    455.77
    -6.03 (-1.31%)
     
  • S&P 500

    3,900.11
    -11.63 (-0.30%)
     
  • Dow

    31,438.26
    -62.42 (-0.20%)
     
  • Nasdaq

    11,524.55
    -83.07 (-0.72%)
     
  • Gold

    1,828.60
    +3.80 (+0.21%)
     
  • Crude Oil

    111.38
    +1.81 (+1.65%)
     
  • 10-Yr Bond

    3.1940
    0.0000 (0.00%)
     
  • FTSE Bursa Malaysia

    1,442.57
    +4.45 (+0.31%)
     
  • Jakarta Composite Index

    6,980.40
    -35.66 (-0.51%)
     
  • PSE Index

    6,345.41
    +106.59 (+1.71%)
     

Surging Earnings Estimates Signal Upside for Park-Ohio (PKOH) Stock

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors might want to bet on Park-Ohio (PKOH), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

Analysts' growing optimism on the earnings prospects of this industrial supply-chain logistics company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Park-Ohio, as there has been strong agreement among the covering analysts in raising estimates.

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $0.26 per share, which is a change of +178.79% from the year-ago reported number.

The Zacks Consensus Estimate for Park-Ohio has increased 187.93% over the last 30 days, as one estimate has gone higher while one has gone lower.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $1.95 per share represents a change of +262.5% from the year-ago number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Park-Ohio. Over the past month, two estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 393.67%.

Favorable Zacks Rank

The promising estimate revisions have helped Park-Ohio earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Park-Ohio have attracted decent investments and pushed the stock 25.2% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ParkOhio Holdings Corp. (PKOH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting