Manchester United (MANU) shares soared 7.3% in the last trading session to close at $14.45. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.6% gain over the past four weeks.
Shares of Manchester United appreciated after the news surfaced that the Glazer family is likely to sell the club for nearly £3.75 billion ($4.32 billion).
This soccer club is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +51.7%. Revenues are expected to be $187.5 million, up 42.7% 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 Manchester United, 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 MANU 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 >>>>
Manchester United belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Six Flags (SIX), closed the last trading session 2.4% lower at $21.92. Over the past month, SIX has returned -9.9%.
For Six Flags , the consensus EPS estimate for the upcoming report has changed -12.7% over the past month to $1.85. This represents a change of +2.8% from what the company reported a year ago. Six Flags currently has a Zacks Rank of #3 (Hold).
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