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Interpublic Group of Companies, Inc. (The) (IPG) - free report >>
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Strength Seen in Stagwell (STGW): Can Its 10.8% Jump Turn into More Strength?
Stagwell (STGW - Free Report) shares rallied 10.8% in the last trading session to close at $8.19. 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 2.6% loss over the past four weeks.
The price appreciation can be correlated to the positive revision of outlook by Moody’s. The analyst has raised the outlook of the company from stable to positive which is an indicator that the growing scale, improved operating profile and recent cost reduction measures are expected to bode well.
This marketing communications company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +162.5%. Revenues are expected to be $674.22 million, up 0.2% 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 Stagwell, the consensus EPS estimate for the quarter has been revised 6.3% 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 STGW 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 >>>>
Stagwell is a member of the Zacks Advertising and Marketing industry. One other stock in the same industry, Interpublic Group (IPG - Free Report) , finished the last trading session 2.5% higher at $40.29. IPG has returned -1.8% over the past month.
For Interpublic, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.61. This represents a change of -3.2% from what the company reported a year ago. Interpublic currently has a Zacks Rank of #3 (Hold).