Avantax (AVTA) Surges 6.0%: Is This an Indication of Further Gains?
Avantax AVTA shares rallied 6% in the last trading session to close at $24.75. 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 3.9% gain over the past four weeks.
AVTA witnessed a rise in price for the third consecutive day. The Federal Reserve paused interest rate hikes last month, which has brought finance stocks in the spotlight once again. Investor sentiment is turning positive for the industry. Moreover, while consumer spending has slowed down, it is still stronger than what was expected if we headed straight into recession. These developments probably drove the AVTA stock higher in last day’s trading session.
This owner of TaxAct tax prep software and the HD Vest financial services firm is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -79.8%. Revenues are expected to be $188.04 million, down 26.8% 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 Avantax, the consensus EPS estimate for the quarter has been revised 1.9% 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 AVTA 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 >>>>
Avantax is part of the Zacks Financial - Miscellaneous Services industry. Globe Life GL, another stock in the same industry, closed the last trading session 0.5% higher at $112.31. GL has returned 3.2% in the past month.
Globe Life's consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $2.57. Compared to the company's year-ago EPS, this represents a change of +24.2%. Globe Life currently boasts a Zacks Rank of #3 (Hold).
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Avantax, Inc. (AVTA) : Free Stock Analysis Report
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