Yahoo Finance Cedar Fair (FUN) Soars 5.6%: Is Further Upside Left in the Stock?
Cedar Fair, L.P. (FUN) shares ended the last trading session 5.6% higher at $46.63. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% loss over the past four weeks.
Shares of Cedar Fair surged following upbeat remarks from an analyst at B. Riley Securities regarding the merger with Six Flags Entertainment and revised price targets. The analyst predicts substantial shareholder value creation from the merger. Optimism is fueled by expectations of reduced seasonal and weather impacts due to the combined footprint of 27 amusement parks and 15 water parks across diverse U.S. regions. The merger is also expected to introduce unified season pass options, boosting park visitation by offering access to the entire park network. Projections suggest synergies could generate approximately $200 million in additional adjusted EBITDA over the next 2-3 years, alleviating inflationary pressures and enhancing overall consumer value.
This company is expected to post quarterly earnings of $1.10 per share in its upcoming report, which represents a year-over-year change of +5.8%. Revenues are expected to be $524.49 million, up 4.7% 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 Cedar Fair, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FUN 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 >>>>
Cedar Fair belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Lindblad Expeditions (LIND), closed the last trading session 3.9% higher at $7.54. Over the past month, LIND has returned -3.7%.
Lindblad Expeditions' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.24. Compared to the company's year-ago EPS, this represents a change of +50%. Lindblad Expeditions currently boasts a Zacks Rank of #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cedar Fair, L.P. (FUN) : Free Stock Analysis Report
Lindblad Expeditions (LIND) : Free Stock Analysis Report
