TKO Group (TKO) Surges 7.8%: Is This an Indication of Further Gains?
TKO Group Holdings (TKO) shares soared 7.8% in the last trading session to close at $87.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.5% loss over the past four weeks.
The upswing in share price came after TKO Group, the parent company of Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE) reached a settlement for two outstanding class action lawsuits against the company. TKO Group has agreed to pay $335 million to settle two class-action lawsuits brought by former UFC fighters, who alleged that the promotion firm engaged in anticompetitive behavior and underpaid its athletes.
This producer of professional wrestling events and television shows is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -2%. Revenues are expected to be $617.76 million, up 107.6% 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 TKO Group, the consensus EPS estimate for the quarter has been revised 9.7% 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 TKO 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 >>>>
TKO Group is part of the Zacks Film and Television Production and Distribution industry. News Corp. (NWSA), another stock in the same industry, closed the last trading session 0.7% higher at $25.91. NWSA has returned -1.9% in the past month.
For News Corporation , the consensus EPS estimate for the upcoming report has changed -24.1% over the past month to $0.14. This represents a change of +55.6% from what the company reported a year ago. News Corporation currently has a Zacks Rank of #3 (Hold).
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TKO Group Holdings, Inc. (TKO) : Free Stock Analysis Report
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