LSB (LXU – Free Report) shares ended the last trading session 8.6% higher at $5.44. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 28.9% loss over the past four weeks.
LXU’s rally is driven by a surge in material stocks after President Trump announced he would pause reciprocal tariffs for 90 days for most countries.
This chemical maker is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -83.3%. Revenues are expected to be $134 million, down 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.
For LSB, the consensus EPS estimate for the quarter has been revised 16.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on LXU 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 >>>>
LSB belongs to the Zacks Chemical – Diversified industry. Another stock from the same industry, Stepan Co. (SCL – Free Report) , closed the last trading session 9.8% higher at $49.69. Over the past month, SCL has returned -23.3%.
For Stepan Co.
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