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Endeavor (EDR) Surges 5.1%: Is This an Indication of Further Gains?

Endeavor Group EDR shares soared 5.1% in the last trading session to close at $25.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.8% gain over the past four weeks.

The upswing in share price can be attributed to Endeavor's announcement that it has entered into a definitive agreement to sell its subsidiary IMG Academy, a leading global sports education institution, to BPEA EQT for enterprise value of $1.25 billion.

This entertainment, sport and content company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -56.2%. Revenues are expected to be $1.58 billion, up 7.3% 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 Endeavor, the consensus EPS estimate for the quarter has been revised 5.4% 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 EDR 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 >>>>

Endeavor is part of the Zacks Media Conglomerates industry. Liberty Media FWONK, another stock in the same industry, closed the last trading session 2.1% lower at $71.46. FWONK has returned -2.6% in the past month.

For Liberty Media , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. This represents a change of -80% from what the company reported a year ago. Liberty Media currently has a Zacks Rank of #3 (Hold).

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