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Bluegreen Vacations Holding Corporation (BVH) Surges 7.5%: Is This an Indication of Further Gains?

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Bluegreen Vacations Holding Corporation (BVH - Free Report) shares soared 7.5% in the last trading session to close at $18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.1% loss over the past four weeks.

Notably, increased optimism over an accelerated recovery of the travel industry coupled with pent up demand and ramped up vaccination drive is likely to have driven the stock higher. Also, the company continues to focus on ‘drive-to’ business model and Bluegreen Renewal initiative, that is likely to revitalize sales and revenue growth in the upcoming periods.

This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +113.8%. Revenues are expected to be $169.97 million, up 80.2% 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 Holding Corporation, 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 BVH 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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