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BGC Group (BGC) Soars 5.0%: Is Further Upside Left in the Stock?

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BGC Group (BGC - Free Report) shares soared 5% in the last trading session to close at $6.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.6% gain over the past four weeks.

BGC Group witnessed a rise in share price for the fifth consecutive day. The company’s shares also touched a 52-week high of $6.10 yesterday. With market participants expecting that the Federal Reserve not hiking rates at its November FOMC meeting, finance stocks are likely to gain. Thus, this optimism drove the BGC stock higher.

This brokerage company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $472.9 million, up 13.5% 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 BGC Group, 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 BGC 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 >>>>

BGC Group belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Evercore (EVR - Free Report) , closed the last trading session 0.3% lower at $133.95. Over the past month, EVR has returned -2.6%.

For Evercore, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.31. This represents a change of -40.5% from what the company reported a year ago. Evercore currently has a Zacks Rank of #3 (Hold).


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