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World Acceptance (WRLD) Stock Jumps 4.3%: Will It Continue to Soar?

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World Acceptance (WRLD - Free Report) shares rallied 4.3% in the last trading session to close at $245.14. 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 4.4% gain over the past four weeks.

World Acceptance stock witnessed a rise in share price for the second consecutive day. Investors have been bullish of late on the performance of consumer loan providers, which is expected to be robust next year. The prospects of a tighter monetary policy – faster pace of bond-purchase tapering that will position the Federal Reserve to raise interest rates (probably thrice) in 2022 – possibly led to the optimistic investor sentiments, which drove World Acceptance higher.

This subprime consumer lender is expected to post quarterly earnings of $2.10 per share in its upcoming report, which represents a year-over-year change of -6.7%. Revenues are expected to be $143.74 million, up 9.8% 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 World Acceptance, 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 WRLD 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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