Yahoo Finance IGT (IGT) Soars 14.3%: Is Further Upside Left in the Stock?
International Game Technology (IGT) shares soared 14.3% in the last trading session to close at $31.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.6% gain over the past four weeks.
International Game Technology’s rally is buoyed by optimism regarding the company’s strength in same-store sales and Global Gaming performance. Also, new game innovation and portfolio optimization strategies bode well.
This slot machine maker is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -35.1%. Revenues are expected to be $1.03 billion, up 0.5% 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 IGT, the consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IGT 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 >>>>
IGT belongs to the Zacks Gaming industry. Another stock from the same industry, Churchill Downs (CHDN), closed the last trading session 0.8% higher at $140.64. Over the past month, CHDN has returned -4.8%.
Churchill Downs' consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $2.52. Compared to the company's year-ago EPS, this represents a change of +29.2%. Churchill Downs currently boasts a Zacks Rank of #3 (Hold).
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International Game Technology (IGT) : Free Stock Analysis Report
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