Cedar Fair, L.P. (FUN) Surges 13.1%: Is This an Indication of Further Gains?
Cedar Fair, L.P. (FUN) shares rallied 13.1% in the last trading session to close at $56.25. 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 1.4% loss over the past four weeks.
Shares of Cedar Fair appreciated following the news that it has received an “unsolicited non-binding proposal” from SeaWorld Entertainment, Inc.
This company is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of +77.7%. Revenues are expected to be $298.6 million, up 781.4% 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 Cedar Fair, L.P., the consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FUN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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