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Atlanticus Holdings Corporation (ATLC) Surges 5.5%: Is This an Indication of Further Gains?

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Atlanticus Holdings Corporation (ATLC - Free Report) shares rallied 5.5% in the last trading session to close at $77.49. 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 38.5% gain over the past four weeks.

The surge in shares reflects investors’ growing confidence in the company’s business, underscored by a rise in customers served, managed assets, revenues and profitability.

Investment in technology and expanding marketing channels will continue to generate solid results.

Strong performance in its two main operating lines, general purpose credit cards and point-of-sale financing mirrors operational efficiency.

This company is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of -12.8%. Revenues are expected to be $180.32 million, up 87.8% 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 Atlanticus Holdings 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 ATLC 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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