Strength Seen in Universal Technical (UTI): Can Its 9.1% Jump Turn into More Strength?
Universal Technical Institute (UTI) shares ended the last trading session 9.1% higher at $13.01. 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 1.3% gain over the past four weeks.
The company's current rally can be attributable to continued execution on its growth and diversification strategy as well as completion of Concorde's integration process with the launch of 13 new programs across eight UTI division campuses and two new programs at Concorde campuses.
This school for auto, motorcycle and marine technicians is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $169.5 million, up 41.3% 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 Universal Technical, 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 UTI 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 >>>>
Universal Technical is part of the Zacks Schools industry. TAL Education (TAL), another stock in the same industry, closed the last trading session 1.1% lower at $11.96. TAL has returned 10.9% in the past month.
TAL Education's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. Compared to the company's year-ago EPS, this represents a change of +75%. TAL Education currently boasts a Zacks Rank of #2 (Buy).
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
Universal Technical Institute Inc (UTI) : Free Stock Analysis Report
TAL Education Group (TAL) : Free Stock Analysis Report
