PROG Holdings PRG shares soared 5.1% in the last trading session to close at $43.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.7% gain over the past four weeks.
Shares of PRG have gained in the last five consecutive trading sessions, supported by the improvement in broader market sentiment toward consumer finance stocks.
This rent-to-own company is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -5.9%. Revenues are expected to be $711.55 million, up 17.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For PROG Holdings, 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 PRG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
PROG Holdings belongs to the Zacks Financial - Consumer Loans industry. Another stock from the same industry, Open Lending LPRO, closed the last trading session 0.3% lower at $3.12. Over the past month, LPRO has returned 28.8%.
Open Lending's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. Compared to the company's year-ago EPS, this represents no change. Open Lending currently boasts a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).