Strength Seen in Sun Country Airlines (SNCY): Can Its 6.5% Jump Turn into More Strength?
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Sun Country Airlines Holdings, Inc. (SNCY) shares ended the last trading session 6.5% higher at $10.57. 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 14.9% loss over the past four weeks.
The uptick was owing to the bullish view expressed by Scott Group from Wolfe Research on Sun Country Airlines Holdings. Scott Group upgraded its rating on the carrier to a Buy. The upgrade was owing to SNCY’s unique operational model and financial performance.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -85.7%. Revenues are expected to be $252.06 million, up 1.3% 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 Sun Country Airlines, the consensus EPS estimate for the quarter has been revised 4.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SNCY 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 >>>>
Sun Country Airlines is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, Copa Holdings (CPA), finished the last trading session 0.2% lower at $95.19. CPA has returned 11.7% over the past month.
For Copa Holdings , the consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $3.44. This represents a change of -21.6% from what the company reported a year ago. Copa Holdings currently has a Zacks Rank of #3 (Hold).
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Sun Country Airlines Holdings, Inc. (SNCY) : Free Stock Analysis Report
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