Legacy Housing (LEGH) Surges 15.6%: Is This an Indication of Further Gains?
Legacy Housing LEGH shares ended the last trading session 15.6% higher at $24.05. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 22.2% gain over the past four weeks.
Legacy Housing has extended rally for the third consequent day, largely driven by continued optimism in the Operations REIT industry. Occupiers of real estate have been increasingly opting for outsourcing and depending on the expertise of third-party real estate specialists to achieve improvement in execution and efficiency. As a result, the company has been witnessing continued momentum from both new and existing customers.
This mobile home manufacturing company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +25.7%. Revenues are expected to be $47.33 million, up 8.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Legacy Housing, 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. So, make sure to keep an eye on LEGH 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 >>>>
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