Core-Mark shares rallied 6.9% in the last trading session to close at $45.08. 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 1.2% loss over the past four weeks.
Shares of Core-Mark got a boost from its agreement with Performance Food Group Company, per which the latter will acquire the former in a cash and stock transaction. Notably, the deal values Core-Mark at nearly $2.5 billion, and is expected to conclude in the first half of calendar year 2022 – subject to several approvals and conditions. Following the conclusion of the deal, stockholders of Core-Mark will own roughly 13% of the combined company.
Management at Core-Mark stated that the deal forms part of the company’s efforts to cater better to customers as well as enhance shareholder value. The combination of the two companies will lead to a bigger and diversified supplier in the foodservice and convenience retail space, which in turn is likely to drive growth. Markedly, annual run-rate net cost synergies are anticipated to be about $40 million by the third full year following the closing of the deal.
Price and Consensus
This wholesale consumer products distributor is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +5.8%. Revenues are expected to be $4.48 billion, up 5.1% 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 Core-Mark, the consensus EPS estimate for the quarter has been revised 6.8% 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 CORE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Core-Mark (CORE) Stock Jumps 6.9%: Will It Continue to Soar?
Core-Mark shares rallied 6.9% in the last trading session to close at $45.08. 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 1.2% loss over the past four weeks.
Shares of Core-Mark got a boost from its agreement with Performance Food Group Company, per which the latter will acquire the former in a cash and stock transaction. Notably, the deal values Core-Mark at nearly $2.5 billion, and is expected to conclude in the first half of calendar year 2022 – subject to several approvals and conditions. Following the conclusion of the deal, stockholders of Core-Mark will own roughly 13% of the combined company.
Management at Core-Mark stated that the deal forms part of the company’s efforts to cater better to customers as well as enhance shareholder value. The combination of the two companies will lead to a bigger and diversified supplier in the foodservice and convenience retail space, which in turn is likely to drive growth. Markedly, annual run-rate net cost synergies are anticipated to be about $40 million by the third full year following the closing of the deal.
Price and Consensus
This wholesale consumer products distributor is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +5.8%. Revenues are expected to be $4.48 billion, up 5.1% 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 Core-Mark, the consensus EPS estimate for the quarter has been revised 6.8% 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 CORE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>