Manchester United (MANU) shares rallied 11.9% in the last trading session to close at $12.75. 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 6.7% gain over the past four weeks.
Shares of Manchester United appreciated after the news that Michael Knighton is planning a “hostile takeover” of the club.
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, Carnival (CCL), closed the last trading session 9.2% higher at $10.34. Over the past month, CCL has returned 3.7%.
Carnival's consensus EPS estimate for the upcoming report has changed -1750% over the past month to -$0.12. Compared to the company's year-ago EPS, this represents a change of +93.1%. Carnival currently boasts a Zacks Rank of #4 (Sell).
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