Advertisement
Canada markets open in 3 hours 11 minutes

  • S&P/TSX

    21,871.96
    +64.59 (+0.30%)
     

  • S&P 500

    5,010.60
    +43.37 (+0.87%)
     

  • DOW

    38,239.98
    +253.58 (+0.67%)
     

  • CAD/USD

    0.7296
    -0.0005 (-0.07%)
     

  • CRUDE OIL

    81.92
    +0.02 (+0.02%)
     

  • Bitcoin CAD

    90,654.07
    +124.91 (+0.14%)
     

  • CMC Crypto 200

    1,422.04
    +7.28 (+0.51%)
     

  • GOLD FUTURES

    2,312.30
    -34.10 (-1.45%)
     

  • RUSSELL 2000

    1,967.47
    +19.82 (+1.02%)
     

  • 10-Yr Bond

    4.6230
    +0.0080 (+0.17%)
     

  • NASDAQ futures

    17,374.50
    +24.50 (+0.14%)
     

  • VOLATILITY

    16.73
    -0.21 (-1.24%)
     

  • FTSE

    8,052.35
    +28.48 (+0.35%)
     

  • NIKKEI 225

    37,552.16
    +113.55 (+0.30%)
     

  • CAD/EUR

    0.6841
    -0.0009 (-0.13%)
     

Atlas (ATCO) Stock Jumps 22.9%: Will It Continue to Soar?

Zacks Equity Research
·2 min read

Atlas (ATCO) shares ended the last trading session 22.9% higher at $14.22. 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 11.5% gain over the past four weeks.

A proposal from Poseidon Acquisition Corp. to take Atlas private was the primary reason for the sudden surge in the stock price. Per the proposal, a consortium comprising of David L. Sokol (chairman of ATCO), certain affiliates of Fairfax Financial Holdings Limited, the Washington Family and Ocean Network Express Pte. Ltd. jointly plans to acquire all of the outstanding common shares of Atlas that are currently not owned/controlled by the consortium for $14.45 per share in cash.

At present, Fairfax, the Washington Family and Sokol in aggregate own/control roughly 68% of the fully-diluted outstanding shares of Atlas. To looking in to this “take private” plan, ATCO broad of directors intends to form a special committee consisting of independent directors of the board to consider the proposal.

The company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -7.7%. Revenues are expected to be $426.1 million, up 8.2% 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.

ADVERTISEMENT

For Atlas, the consensus EPS estimate for the quarter has been revised 8.5% 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 ATCO 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 >>>>

Atlas is part of the Zacks Financial - Investment Management industry. GCM Grosvenor Inc. (GCMG), another stock in the same industry, closed the last trading session 0.7% lower at $8.20. GCMG has returned 16% in the past month.

For GCM Grosvenor Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. This represents a change of +30% from what the company reported a year ago. GCM Grosvenor Inc. currently has a Zacks Rank of #3 (Hold).


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
 
Atlas Corp. (ATCO) : Free Stock Analysis Report
 
GCM Grosvenor Inc. (GCMG) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research