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Civeo (CVEO) Stock Jumps 7.3%: Will It Continue to Soar?

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Civeo (CVEO - Free Report) shares rallied 7.3% in the last trading session to close at $18.94. 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 6.7% gain over the past four weeks.

Notably, increased optimism over an accelerated recovery of the travel industry coupled with continuity in vaccinations is likely to have driven the stock higher.

Price and Consensus

Price Consensus Chart for Civeo

This provider of remote-site workforce housing is expected to post quarterly loss of $0.56 per share in its upcoming report, which represents a year-over-year change of -366.7%. Revenues are expected to be $125.3 million, down 9.7% 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 Civeo, the consensus EPS estimate for the quarter has been revised 43.6% 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 CVEO 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 >>>>

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