GP Strategies (GPX) shares soared 6.3% in the last trading session to close at $17.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 32.5% gain over the past four weeks.
Robust training outsourcing market and the Automotive Performance Solutions Service offering have been boosting investors’ confidence. Recently, the company reported fourth-quarter 2020 results, wherein earnings not only surpassed the Zacks Consensus Estimate but also improved year over year.
Price and Consensus
This provider of training, consulting and engineering services is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +633.3%. Revenues are expected to be $113.63 million, down 11.4% 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 GP Strategies, the consensus EPS estimate for the quarter has been revised 3.2% 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 GPX 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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