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Virgin Galactic (SPCE) Surges 7.5%: Is This an Indication of Further Gains?

Zacks Equity Research
·2-min read

Virgin Galactic (SPCE) shares ended the last trading session 7.5% higher at $9.52. 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 51% loss over the past four weeks.

The latest uptick in the share price of SPCE can be attributed to the fact that the company recently won a contract from the International Institute for Astronautical Sciences ("IIAS") to fly three research astronauts. This marks the second research mission that IIAS has conducted with Virgin Galactic.

This company is expected to post quarterly loss of $5.07 per share in its upcoming report, which represents a year-over-year change of +44.9%. Revenues are expected to be $3.5 million, up 87.2% 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.

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For Virgin Galactic, 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 SPCE 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 >>>>

Virgin Galactic belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, Redwire Corporation (RDW), closed the last trading session 1.2% higher at $5.83. Over the past month, RDW has returned 20.5%.

For Redwire Corporation , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.12. This represents a change of +25% from what the company reported a year ago. Redwire Corporation currently has a Zacks Rank of #3 (Hold).

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Virgin Galactic Holdings, Inc. (SPCE) : Free Stock Analysis Report

Redwire Corporation (RDW) : Free Stock Analysis Report

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Zacks Investment Research