S&P Global (SPGI) shares rallied 3.3% in the last trading session to close at $408.16. 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 5.4% loss over the past four weeks.
The stock recorded this price increase as the company benefits from investment-grade debt issuance from larger M&A and hyperscalers, strong global ETD revenues, and rapid innovation of AI products.
This independent ratings and analytics provider is expected to post quarterly earnings of $4.92 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $4.06 billion, up 8.2% 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 S&P Global, 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 SPGI 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 >>>>
S&P Global belongs to the Zacks Securities and Exchanges industry. Another stock from the same industry, Nasdaq (NDAQ), closed the last trading session 1.2% higher at $78.56. Over the past month, NDAQ has returned -14.7%.
Nasdaq's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $0.96. Compared to the company's year-ago EPS, this represents a change of +12.9%. Nasdaq currently boasts a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).