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America's Car-Mart (CRMT) Stock Jumps 6.6%: Will It Continue to Soar?

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America's Car-Mart (CRMT - Free Report) shares soared 6.6% in the last trading session to close at $159.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% gain over the past four weeks.

Impressive fourth-quarter fiscal 2021 results pushed the stock higher. The auto retailer posted earnings of $6.19 per share, breezing past the Zacks Consensus Estimate of $2.69. The bottom line also skyrocketed 358.5% year over year. Revenues of $279 million also beat the consensus estimate of $228 million and surged 43% year over year.

Price and Consensus

Price Consensus Chart for CRMT

 

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 America's Car-Mart, 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 CRMT 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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