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Bluegreen Vacations (BXG) Surges 7.8%: Is This an Indication of Further Gains?

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Bluegreen Vacations shares soared 7.8% in the last trading session to close at $9.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11% gain over the past four weeks.

Bluegreen Vacations is benefiting from increase in average sales volume per guest (VPG) and reopening of all its reports. Enhanced sales as well as marketing infrastructure as part of the Bluegreen Renewal initiative have been boosting investors’ confidence.

Price and Consensus

Price Consensus Chart for Bluegreen Vacations

This timeshare developer and operator is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -58.3%. Revenues are expected to be $165.9 million, up 5.7% 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 Bluegreen Vacations, the consensus EPS estimate for the quarter has been revised 17.4% 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 BXG 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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