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General Finance (GFN) shares soared 8.1% in the last trading session to close at $11.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 43.5% gain over the past four weeks.
The company’s containerized fleet with long economic lives and low-maintenance requirements has enabled it to generate free cash flow and reduce debt in the first half of fiscal 2021. The company’s liquidity position remains in good shape as it continues to prudently manage discretionary capital expenditures and acquisition investments.
Price and Consensus
This owner of mobile storage, liquid containment and modular space businesses is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -66.7%. Revenues are expected to be $80.4 million, down 10.6% 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 General Finance, the consensus EPS estimate for the quarter has been revised 500% 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 GFN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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