Strength Seen in Scientific Games (SGMS): Can Its 9.2% Jump Turn into More Strength?
Scientific Games (SGMS) shares ended the last trading session 9.2% higher at $55.07. 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 24.1% gain over the past four weeks.
Increasing optimism over an accelerated recovery of the U.S. Lottery industry driven by the growing involvement of private vendors in state lottery management, higher prize payouts and introduction of tiered pricing for national jackpot games, primarily drove the stock to a 52-week high.
Product innovation, better instant ticket product management, prize payout increases and sales of higher priced tickets are major growth drivers.
Price and Consensus
This instant-win lottery ticket maker is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -660%. Revenues are expected to be $735.08 million, up 1.4% 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 Scientific Games, 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 SGMS 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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