Universal Technical (UTI) Stock Jumps 5.8%: Will It Continue to Soar?
Universal Technical Institute (UTI) shares ended the last trading session 5.8% higher at $6.89. 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 5.5% loss over the past four weeks.
Universal Technical Institute’s rally is largely driven by optimism regarding the company’s pent-up consumer demand, new program launches and improvement in the broader enrollment environment. Also, emphasis on strategic investments to strengthen operational infrastructure and support recruitment efforts (across high school and military channels) bode well.
This school for auto, motorcycle and marine technicians is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -161.5%. Revenues are expected to be $149.85 million, up 48.4% 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 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 belongs to the Zacks Schools industry. Another stock from the same industry, Nerdy Inc. (NRDY), closed the last trading session 2% higher at $4.14. Over the past month, NRDY has returned 30.1%.
Nerdy Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. Compared to the company's year-ago EPS, this represents a change of +85.7%. Nerdy Inc. currently boasts a Zacks Rank of #2 (Buy).
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