Strength Seen in Mesa Air (MESA): Can Its 12.4% Jump Turn into More Strength?

Mesa Air (MESA) shares rallied 12.4% in the last trading session to close at $8.70. 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 no gain, no loss over the past four weeks.

Mesa Air's shares gained following Delta Air Lines' comments on international travel demand. Management of the Atlanta-based airline heavyweight said that a 450% surge in international bookings was witnessed in the six weeks since the United States announced plans to reopen international borders.

This regional airline is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -62.5%. Revenues are expected to be $147.12 million, up 36.2% 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 Mesa Air, 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 MESA 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 >>>>

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
 
Mesa Air Group, Inc. (MESA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.