Overstock (OSTK) Moves 11.1% Higher: Will This Strength Last?
Overstock.com (OSTK) shares soared 11.1% in the last trading session to close at $17.46. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 23.7% loss over the past four weeks.
Overstock.com extended its rally, driven by the latest investment by its Director, Marcus Lemonis who purchased 31,800 shares of the company at $15.67 per share. This indicates insider’s confidence in the company’s future performance and prospects.
This online discount retailer is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of -561.5%. Revenues are expected to be $391.87 million, down 14.9% 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 Overstock, the consensus EPS estimate for the quarter has been revised 60.9% 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 OSTK 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 >>>>
Overstock belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, TripAdvisor (TRIP), closed the last trading session 0.6% higher at $15.97. Over the past month, TRIP has returned 2.6%.
TripAdvisor's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.48. Compared to the company's year-ago EPS, this represents a change of +71.4%. TripAdvisor currently boasts a Zacks Rank of #3 (Hold).
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
Overstock.com, Inc. (OSTK) : Free Stock Analysis Report
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
