Light & Wonder (LNWO) shares rallied 5% in the last trading session to close at $89. 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% loss over the past four weeks.
Light & Wonder is benefiting from strong gaming demand, reflected in record machine sales, higher unit shipments and continued expansion of its premium installed base, driving solid revenue growth.
This instant-win lottery ticket maker is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of +20.7%. Revenues are expected to be $881.55 million, up 13.9% 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 Light & Wonder, 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 LNWO 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 >>>>
Light & Wonder is a member of the Zacks Gaming industry. One other stock in the same industry, Monarch Casino (MCRI), finished the last trading session 0.4% lower at $98.47. MCRI has returned 1% over the past month.
Monarch Casino's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.15. Compared to the company's year-ago EPS, this represents a change of +9.5%. Monarch Casino currently boasts a Zacks Rank of #3 (Hold).
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Light & Wonder, Inc. (LNWO): Free Stock Analysis Report
Monarch Casino & Resort, Inc. (MCRI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).