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RCI Hospitality (RICK) Surges 9.8%: Is This an Indication of Further Gains?

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RCI Hospitality (RICK - Free Report) shares ended the last trading session 9.8% higher at $87.98. 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 24.6% gain over the past four weeks.

Improving customer experience, seeking new clubs to buy, the recent opening of its new company-owned Bombshells Arlington and robust performance of Florida clubs have been boosting investors’ confidence.

This adult nightclub chain is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of +164.1%. Revenues are expected to be $60.52 million, up 57.6% 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 RCI Hospitality, the consensus EPS estimate for the quarter has been revised 22.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RICK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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