Lawson Products (LAWS) Soars 11%: Is Further Upside Left in the Stock?

·2-min read

Lawson Products, Inc. (LAWS) shares rallied 11% in the last trading session to close at $60.53. 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 5.1% gain over the past four weeks.

Lawson Products’ rally is largely driven by optimism over the company’s solid momentum in its Partsmaster business (acquired in September 2020), backed by solid demand for its products and services and an efficient sales team. Notably, the business contributed $15.7 million to sales in first-quarter 2021.

Price and Consensus

Price Consensus Chart for LAWS
Price Consensus Chart for LAWS

This industrial products and tools maker is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +757.1%. Revenues are expected to be $107.82 million, up 49.4% 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 Lawson Products, the consensus EPS estimate for the quarter has been revised 8.5% 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 LAWS 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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