Back to top

Image: Bigstock

Earnings Estimates Moving Higher for Target Hospitality (TH): Time to Buy?

Read MoreHide Full Article

Target Hospitality (TH - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Target Hospitality, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

Current-Quarter Estimate Revisions

The company is expected to earn $0.55 per share for the current quarter, which represents a year-over-year change of +685.71%.

Over the last 30 days, the Zacks Consensus Estimate for Target Hospitality has increased 7.84% because one estimate has moved higher while one has gone lower.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $1.37 per share represents a change of +2840% from the year-ago number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Target Hospitality. Over the past month, two estimates have moved higher compared to one negative revision, helping the consensus estimate increase 12.88%.

Favorable Zacks Rank

The promising estimate revisions have helped Target Hospitality earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Target Hospitality have attracted decent investments and pushed the stock 9.5% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Target Hospitality Corp. (TH) - free report >>

Published in