GP Strategies Corporation GPX shares rallied 6.5% in the last trading session to close at $16.48. 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 5.8% loss over the past four weeks.
Shares of GP Strategies jumped after the company posted first quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Moreover, gross margin marks the strongest in the last ten years for a first quarter.
Price and Consensus
This provider of training, consulting and engineering services is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +633.3%. Revenues are expected to be $113.66 million, down 11.4% 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 GP Strategies, 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 GPX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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