Civeo (CVEO) shares soared 6.7% in the last trading session to close at $32.02. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.3% loss over the past four weeks.
Civeo shares rebounded on bargain buying following the recent selloff, with investor sentiment supported by its long-term contract renewal and balance sheet financing initiatives.
This provider of remote-site workforce housing is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $170.92 million, up 5.1% 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 Civeo, 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 CVEO 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 >>>>
Civeo is part of the Zacks Hotels and Motels industry. Hyatt Hotels (H), another stock in the same industry, closed the last trading session 1.2% higher at $193.48. H has returned -0.9% in the past month.
For Hyatt Hotels, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.89. This represents a change of +30.9% from what the company reported a year ago. Hyatt Hotels currently has a Zacks Rank of #3 (Hold).
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Civeo Corporation (CVEO): Free Stock Analysis Report
Hyatt Hotels Corporation (H): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).