Chart Industries (GTLS) Moves 8.7% Higher: Will This Strength Last?

Zacks Equity Research
·2-min read

Chart Industries, Inc. (GTLS) shares rallied 8.7% in the last trading session to close at $147.33. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.4% loss over the past four weeks.

Chart Industries recorded solid price appreciation courtesy of its encouraging first-quarter 2021 results, with adjusted earnings surpassing the Zacks Consensus Estimate by 8.8% and increasing 29.8% on a year-over-year basis. Substantial growth in orders along with robust performance across most of its segments contributed to the company’s strong first-quarter performance.

Price and Consensus

Price Consensus Chart for GTLS
Price Consensus Chart for GTLS

This equipment maker for the energy sector is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +19.3%. Revenues are expected to be $306.33 million, down 4.6% 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 Chart Industries, the consensus EPS estimate for the quarter has been revised marginally 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 GTLS 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 >>>>


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