Yahoo Finance Aaron's (AAN) Surges 33.4%: Is This an Indication of Further Gains?
Aaron's Company, Inc. (AAN) shares soared 33.4% in the last trading session to close at $10.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.7% loss over the past four weeks.
The Aaron’s stock moved higher after it signed an agreement to get acquired by IQVentures Holdings, LLC for $10.10 per share in cash, summing up to a total enterprise value of $504 million. The companies expect to close the transaction by the end of 2024, after receiving unanimous consent from Aaron’s board and satisfying other closing conditions. After the completion of the transaction, AAN will continue to operate under its current brand name and retain its headquarters in Atlanta, GA. Post the sale, Aaron’s will be a privately-held company and cease to trade on the NYSE.
This specialty retail is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -94.9%. Revenues are expected to be $508.41 million, down 4.1% 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 Aaron's, the consensus EPS estimate for the quarter has been revised 40% 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 AAN 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 >>>>
Aaron's belongs to the Zacks Consumer Services - Miscellaneous industry. Another stock from the same industry, Mister Car Wash (MCW), closed the last trading session 2.4% higher at $7.40. Over the past month, MCW has returned 1.4%.
Mister Car Wash's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. Compared to the company's year-ago EPS, this represents no change. Mister Car Wash currently boasts a Zacks Rank of #3 (Hold).
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