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Strength Seen in Gaia (GAIA): Can Its 9.3% Jump Turn into More Strength?

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Gaia (GAIA - Free Report) shares rallied 9.3% in the last trading session to close at $11.52. 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 13% loss over the past four weeks.

The upswing in Gaia’s share price can be attributed to impressive first-quarter 2021 results.  Earnings of two cents per share beat the Zacks Consensus Estimate by a penny. Revenues increased 30% year over year to $19 million and was in line with the consensus mark. At the end of the first quarter, Gaia had more than 750,000 members.


Price and Consensus

Price Consensus Chart for GAIA


This lifestyle media company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +105.3%. Revenues are expected to be $18.8 million, up 29.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Gaia, 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 GAIA 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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