U.S. markets closed
  • S&P 500

    4,173.85
    +61.35 (+1.49%)
     
  • Dow 30

    34,382.13
    +360.68 (+1.06%)
     
  • Nasdaq

    13,429.98
    +304.99 (+2.32%)
     
  • Russell 2000

    2,224.63
    +53.68 (+2.47%)
     
  • Crude Oil

    65.51
    +1.69 (+2.65%)
     
  • Gold

    1,844.00
    +20.00 (+1.10%)
     
  • Silver

    27.50
    +0.46 (+1.69%)
     
  • EUR/USD

    1.2146
    +0.0062 (+0.51%)
     
  • 10-Yr Bond

    1.6350
    -0.0330 (-1.98%)
     
  • GBP/USD

    1.4102
    +0.0050 (+0.36%)
     
  • USD/JPY

    109.3470
    -0.0870 (-0.08%)
     
  • BTC-USD

    48,921.80
    +127.04 (+0.26%)
     
  • CMC Crypto 200

    1,398.33
    +39.77 (+2.93%)
     
  • FTSE 100

    7,043.61
    +80.28 (+1.15%)
     
  • Nikkei 225

    28,084.47
    +636.46 (+2.32%)
     

General Finance (GFN) Surges 55.7%: Is This an Indication of Further Gains?

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

General Finance GFN shares soared 55.7% in the last trading session to close at $18.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.8% gain over the past four weeks.

This increased investor optimism can be attributed to the news of its merger with United Rentals URI for $19 per share in cash, representing a total enterprise value of $996 million.

Price and Consensus

Price Consensus Chart for GFN
Price Consensus Chart for GFN

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 remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. More importantly, as the stock has already reached the offer price for its acquisition, the possibility of a price appreciation down the road is slim.

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 >>>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

United Rentals, Inc. (URI) : Free Stock Analysis Report

General Finance Corporation (GFN) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research