Strength Seen in SP Plus (SP): Can Its 44.7% Jump Turn into More Strength?
SP Plus (SP) shares ended the last trading session 44.7% higher at $51.22. 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 6.8% loss over the past four weeks.
Shares of SP Plus rallied on the news of its planned acquisition by Metropolis Technologies. Per the deal, Metropolis Technologies will buy SP Plus for $1.5 billion, including debt. SP Plus shareholders will receive $54 per share, representing a premium of 52.5% over closing price of the stock on Oct 4, 2023. This move is likely to fuel growth and generate substantial value for SP Plus’ customers and stockholders.
This parking facility management company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -8.8%. Revenues are expected to be $221.5 million, up 7% 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 SP Plus, 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 SP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
SP Plus belongs to the Zacks Consumer Services - Miscellaneous industry. Another stock from the same industry, Cimpress (CMPR), closed the last trading session 1.1% lower at $67.54. Over the past month, CMPR has returned 5.1%.
For Cimpress , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.23. This represents a change of +76.3% from what the company reported a year ago. Cimpress currently has a Zacks Rank of #3 (Hold).
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