Strength Seen in RB Global: Can Its 8.9% Jump Turn into More Strength?

RB Global RBA shares ended the last trading session 8.9% higher at $79.12. 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 5% loss over the past four weeks.

The fundamental driving factor can be attributed to the fact that RB Global joined the S&P MidCap 400, which will be effective before trading opens on Jun 24. The company's competitive advantage lies in its global omnichannel platform, trusted customer relationships, and robust data analytics, enabling unparalleled flexibility, optimal price realization, and comprehensive value-added services for commercial assets and vehicles, which might have acted as tailwinds for it.

This heavy equipment auctioneer is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +5.9%. Revenues are expected to be $1.14 billion, up 3.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For RB Global, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RBA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy).

RB Global belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Envestnet ENV, closed the last trading session 3.1% lower at $62.26. Over the past month, ENV has returned -4.6%.

For Envestnet, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.63. This represents a change of +37% from what the company reported a year ago. Envestnet currently has a Zacks Rank of #3 (Hold).

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