Grupo Aeroportuario del Pacifico (PAC) shares soared 4.5% in the last trading session to close at $210. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% loss over the past four weeks.
The uptick followed an upgrade by HSBC, with Mexican airports reporting a year-over-year increase in traffic for July as well as August. Airline capacity is expected to be supported by the gradual return to service of aircraft grounded by GTF engine inspections.
This airport facilities manager is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of -6.3%. Revenues are expected to be $718.57 million, up 39.8% 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 Grupo Aeroportuario del Pacifico, 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 PAC 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 >>>>
Grupo Aeroportuario del Pacifico is a member of the Zacks Transportation - Services industry. One other stock in the same industry, Avis Budget Group (CAR), finished the last trading session 2.9% lower at $107.98. CAR has returned -19.8% over the past month.
Avis Budget's consensus EPS estimate for the upcoming report has changed +15.7% over the past month to $8.54. Compared to the company's year-ago EPS, this represents a change of -15.5%. Avis Budget currently boasts a Zacks Rank of #3 (Hold).
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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).