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Inspired Entertainment (INSE) Soars 5.3%: Is Further Upside Left in the Stock?

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Inspired Entertainment (INSE - Free Report) shares rallied 5.3% in the last trading session to close at $10.33. 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 25% loss over the past four weeks.

Inspired Entertainment, a business-to-business gaming technology company, recently announced that it will be providing 700 video lottery terminals to Saskatchewan Liquor and Gaming Authority.

In the last reported quarter, Inspired witnessed a 71% year over year rise in revenue, reaching $37 million. Moreover, the company aims to continue to grow capital efficient interactive and virtual sports businesses.

This company is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of +82.6%. Revenues are expected to be $55.73 million, up 144.4% 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 Inspired Entertainment, the consensus EPS estimate for the quarter has been revised 14.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on INSE 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 >>>>

Inspired Entertainment is part of the Zacks Technology Services industry. Trane Technologies (TT - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $146.91. TT has returned -2.2% in the past month.

Trane Technologies' consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $1. Compared to the company's year-ago EPS, this represents a change of -1%. Trane Technologies currently boasts a Zacks Rank of #3 (Hold).

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