GFL Environmental Inc. (GFL) shares rallied 8% in the last trading session to close at $40.49. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.6% gain over the past four weeks.
The stock recorded this price increase as the company’s CEO showed interest in a potential take-private offer, raising interest from buyout firms.
This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -15.8%. Revenues are expected to be $1.4 billion, up 16% 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 GFL Environmental, 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 GFL 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 >>>>
GFL Environmental is part of the Zacks Waste Removal Services industry. Montrose Environmental (ONT), another stock in the same industry, closed the last trading session 5.5% higher at $22.08. ONT has returned 22% in the past month.
Montrose Environmental's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.39. Compared to the company's year-ago EPS, this represents a change of -38.1%. Montrose Environmental currently boasts a Zacks Rank of #3 (Hold).
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GFL Environmental Inc. (GFL): Free Stock Analysis Report
Montrose Environmental Group, Inc. (ONT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).