Stocks making new highs tend to make even higher highs, particularly when positive earnings estimate revisions begin rolling in.
By targeting stocks breaking out or nearing fresh highs, investors can inject themselves into bullish trends where buyers are in control.
With the market’s rebound in 2023, many stocks are now near or breaking 52-week highs, including Constellation Energy Corp. CEG, Ryder System R, and Carpenter Technology CRS.
In addition to seeing favorable price action, all three have enjoyed positive earnings estimate revisions, indicating optimism among analysts. Let’s take a closer look at each.
Constellation Energy Corp.
Constellation Energy, a current Zacks Rank #1 (Strong Buy), generates and markets electricity. Analysts have taken their earnings expectations higher across all timeframes, with the revisions trend particularly notable for its current fiscal year.
CEG shares have been trading above the 50-day simple moving average, reflecting positive momentum with buyers in control. It’s been a pivotal level for shares in previous instances.
The company is forecasted to witness significant bottom line growth in its current year, with the $5.42 Zacks Consensus EPS Estimate 1200% higher than the year-ago figure and likely reflecting more effective cost controls.
Ryder System
Ryder System is a leading logistics and transportation company providing supply chain, dedicated transportation, and fleet management solutions. The stock is a Zacks Rank #1 (Strong Buy), with analysts taking their expectations modestly higher across the board.
And for those seeking income, Ryder shares have that covered, currently yielding a solid 2.8% annually. Dividend growth is also apparent, with the payout growing by a respectable 3% annually over the last five years.
Ryder shares are now breaking not just 52-week highs but all-time highs as well.
Carpenter Technology
Carpenter Technology produces and distributes premium specialty alloys, including titanium alloys, powder metals, stainless steels, and more.
Analysts have taken their expectations higher across several timeframes, with the revisions trend powerful for its upcoming release expected in late October.
The company posted results well above expectations in its latest release, beating the Zacks Consensus EPS Estimate by more than 15% and delivering a 5% revenue surprise. CRS has enjoyed an acceleration in sales growth over the recent quarters.
Keep an eye out for the company’s upcoming release expected in late October, as the Zacks Consensus EPS Estimate of $0.75 suggests a 630% improvement from the year-ago period. Our consensus revenue estimate stands at $702 million, 35% higher than year-ago sales of $522 million.
Bottom Line
Stocks nearing or breaking 52-week highs reflect considerable momentum, with positive earnings estimates from analysts commonly providing the fuel needed to continue climbing.
And for those interested in stocks seeing notable buying pressure, all three above – Constellation Energy Corp. CEG, Ryder System R, and Carpenter Technology CRS – precisely fit the criteria.
In addition to favorable price action, all three have seen their near-term earnings outlooks shift positively.
Constellation Energy Corporation (CEG): Free Stock Analysis Report
Ryder System, Inc. (R): Free Stock Analysis Report
Carpenter Technology Corporation (CRS): Free Stock Analysis Report
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