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Strength Seen in Proterra Inc. (PTRA): Can Its 10.9% Jump Turn into More Strength?

Proterra Inc. (PTRA) shares soared 10.9% in the last trading session to close at $5.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 33.1% gain over the past four weeks.

The jump in Proterra’s share price yesterday cannot be attributed to any particular development in the company. The price increase is just part of the broader rally in the electric vehicle space as Fed Chairman Jerome Powell tilted to a less hawkish stance at the recent FOMC meeting. Powell acknowledged that “the disinflation process has started,” and how incredibly relieving it is to see that process begin. Investors’ confidence soared as worries over high interest rates and a recession have somewhat subsided at the moment.

This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +45.5%. Revenues are expected to be $90.26 million, up 31.9% 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.

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For Proterra Inc., 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 PTRA 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 >>>>

Proterra Inc. belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, IAA (IAA), closed the last trading session 0.1% higher at $42.47. Over the past month, IAA has returned 6%.

For IAA , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.53. This represents a change of -13.1% from what the company reported a year ago. IAA currently has a Zacks Rank of #3 (Hold).

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Proterra Inc. (PTRA) : Free Stock Analysis Report

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