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MARKETS LIVE BLOG:

STOCKS OPEN MIXED, TESLA SURGES DAY AFTER EARNINGS

Tesla shares jump after EV maker vows to speed up launch of more affordable models

Ashford (AINC) Soars 7.7%: Is Further Upside Left in the Stock?

Zacks Equity Research
·2 min read

Ashford (AINC) shares soared 7.7% in the last trading session to close at $17.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.5% loss over the past four weeks.

Ashford witnessed a rise in share price for the fourth consecutive day. The performance of finance sector stocks, including investment management companies, is expected to improve as the present macroeconomic uncertainty leads to rise in demand for such services. With the operating backdrop gradually improving for the industry players, investors are turning bullish. This, thus, led to optimistic stance, which drove AINC stock higher.

This asset management company serving the hospitality industry is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of -20.7%. Revenues are expected to be $148.21 million, up 44.8% 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.

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For Ashford, the consensus EPS estimate for the quarter has been revised 26.7% 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 AINC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ashford is part of the Zacks Financial - Investment Management industry. Capital Southwest (CSWC), another stock in the same industry, closed the last trading session 1.8% higher at $18.23. CSWC has returned -13.1% in the past month.

For Capital Southwest , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.51. This represents a change of +18.6% from what the company reported a year ago. Capital Southwest currently has a Zacks Rank of #3 (Hold).


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Zacks Investment Research