Yahoo Finance MoneyGram (MGI) Moves 5% Higher: Will This Strength Last?
MoneyGram (MGI) shares ended the last trading session 5% higher at $10.24. 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 21.4% gain over the past four weeks.
MoneyGram has been witnessing better customer adoption of its digital platform, which drives solid business growth. Its digital suite is growing at a breakneck speed owing to high demand.
Earlier this month, the company even introduced an "at-the-market" equity offering program through which it will periodically offer and sell common stock’s shares worth up to $100 million in aggregate sales price.
Other factors, such as expansion of its digital platform and growth initiatives will help the company boost customer sales and increase revenues. All these factors are expected to help the stock continue its rally.
This money transfer company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $321.41 million, up 14.9% 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 MoneyGram, 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 MGI 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 >>>>
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