Strength Seen in BGC Partners (BGCP): Can Its 6.5% Jump Turn into More Strength?
BGC Partners (BGCP) shares soared 6.5% in the last trading session to close at $5.40. 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% gain over the past four weeks.
Shares of BGC Partners touched a 52-week high. After stumbling substantially over the past week following the fallout from the bank runs and subsequent collapse of two S&P 500 banks, the investors regained some confidence in the finance sector amid the steps taken by the regulators to avert a full-blown crisis. Moreover, inflation numbers came out as expected, which further reinforced investor optimism. These developments drove the BGCP stock higher.
This brokerage company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +14.3%. Revenues are expected to be $537.4 million, up 6.1% 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 BGC Partners, the consensus EPS estimate for the quarter has been revised 4.4% 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 BGCP 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 >>>>
BGC Partners belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Evercore (EVR), closed the last trading session 2.4% higher at $117.35. Over the past month, EVR has returned -14.2%.
For Evercore , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.72. This represents a change of -54.7% from what the company reported a year ago. Evercore currently has a Zacks Rank of #2 (Buy).
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