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FirstService (FSV) Surges 5.4%: Is This an Indication of Further Gains?

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FirstService (FSV - Free Report) shares ended the last trading session 5.4% higher at $192.31. 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 2.1% loss over the past four weeks.

This increased optimism stems from the rebound in investor sentiment for the industry it belongs to. The company declared a quarterly common stock cash dividend of 18.25 cents per share, payable on Oct 7, to shareholders of record at the close of business on Sep 30, 2021.

Moreover, its subsidiary — First Onsite Property Restoration — recently acquired Insurance Restoration Specialists (“IRS”), which is a reputed independently-owned commercial restoration service provider throughout New Jersey, and also serves its clients within the New York City and Philadelphia metropolitan areas.

Price and Consensus

Price Consensus Chart for FSV

This property services provider is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of -0.8%. Revenues are expected to be $804.9 million, up 8.5% 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 FirstService, 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 FSV 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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