Light & Wonder (LNW) shares rallied 11% in the last trading session to close at $97.67. 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 3.2% gain over the past four weeks.
Light and Wonder is benefiting from solid sales growth of gaming machines and healthy traction in the core social casino business. The company strives to be a leading cross-platform global games company with a focus on content and digital markets. It follows a holistic growth strategy and intends to extend its footprint in high-return markets and strategic adjacencies that generate strong long-term cash-based returns. Management is putting strong emphasis on implementing automation, standardization, AI tools and process development to drive organizational efficiency and scalability on a global level. Various initiatives to mitigate exposure to interest rate fluctuations are commendable. Focus on enhancing profitability and maximizing shareholders' returns is a positive. These factors have instilled investor optimism, which probably propelled the share price appreciation.
This instant-win lottery ticket maker is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +48%. Revenues are expected to be $795.27 million, up 3.3% 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 Light & Wonder, the consensus EPS estimate for the quarter has been revised 4.6% 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 LNW 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 >>>>
Light & Wonder belongs to the Zacks Gaming industry. Another stock from the same industry, Churchill Downs (CHDN), closed the last trading session 0.3% higher at $122.43. Over the past month, CHDN has returned -3.8%.
For Churchill Downs , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.93. This represents a change of +8.1% from what the company reported a year ago. Churchill Downs currently has a Zacks Rank of #3 (Hold).
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