Lincoln Educational Services (LINC) Soars 9.1%: Is Further Upside Left in the Stock?

Zacks
2024-11-07

Lincoln Educational Services Corporation (LINC) shares rallied 9.1% in the last trading session to close at $15.09. 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 15.4% gain over the past four weeks.

This leading education stock gained on the expectations that some of the regulatory pressure on the industry will be eased after President-elect Donald Trump begins his term in January 2025.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +27.3%. Revenues are expected to be $111.05 million, up 11.5% 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 Lincoln Educational Services, 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 LINC 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 >>>>

Lincoln Educational Services is part of the Zacks Schools industry. Afya (AFYA), another stock in the same industry, closed the last trading session 1.1% lower at $17.89. AFYA has returned 9.4% in the past month.

Afya's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.36. Compared to the company's year-ago EPS, this represents a change of +28.6%. Afya currently boasts a Zacks Rank of #3 (Hold).

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