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At Home Group (HOME) Surges 20.5%: Is This an Indication of Further Gains?

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At Home Group (HOME - Free Report) shares ended the last trading session 20.5% higher at $37.70. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 19.6% gain over the past four weeks.

This increased investor optimism can be attributed to the news of its merger with a private equity firm Hellman & Friedman (H&F) in an all-cash transaction, representing a total consideration of $2.8 billion, including the assumption of debt.

Lee Bird, chairman and CEO of At Home, said, "As we enter the next chapter for our company, H&F is the ideal partner to advance our At Home 2.0 long term strategy. Together with H&F, we will have the resources and flexibility to provide our customers with a differentiated experience that meets their evolving needs."

Price and Consensus

Price Consensus Chart for HOME

This home decor retailer is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $465.37 million, up 145.1% 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 At Home Group, the consensus EPS estimate for the quarter has been revised 1.9% 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 HOME 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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