Earnings Estimates Moving Higher for Lincoln Educational Services Corporation (LINC): Time to Buy?
Investors might want to bet on Lincoln Educational Services Corporation (LINC), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, 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. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
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.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Lincoln Educational Services Corporation, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.06 per share, which is a change of -40% from the year-ago reported number.
Over the last 30 days, two estimates have moved higher for Lincoln Educational Services Corporation compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 33.33%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $0.35 per share represents a change of -20.45% from the year-ago number.
The revisions trend for the current year also appears quite promising for Lincoln Educational Services Corporation, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 9.38%.
Favorable Zacks Rank
The promising estimate revisions have helped Lincoln Educational Services Corporation earn a Zacks Rank #2 (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
Lincoln Educational Services Corporation shares have added 34.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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Lincoln Educational Services Corporation (LINC) : Free Stock Analysis Report
