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IGT (IGT) Surges 11.7%: Is This an Indication of Further Gains?

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International Game Technology (IGT - Free Report) shares rallied 11.7% in the last trading session to close at $21.24. 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 9.6% loss over the past four weeks.

IGT’s rally is largely driven by optimism regarding the company’s strong gaming and lottery product sales, increased visitation by younger demographic and portfolio optimization initiatives.

This slot machine maker is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +172.9%. Revenues are expected to be $1.03 billion, down 1.5% 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 IGT, 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 IGT 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 >>>>

IGT belongs to the Zacks Gaming industry. Another stock from the same industry, Penn National Gaming (PENN - Free Report) , closed the last trading session 12.7% higher at $32.12. Over the past month, PENN has returned -9.5%.

For Penn National Gaming, the consensus EPS estimate for the upcoming report has changed +3.9% over the past month to $0.50. This represents a change of -57.3% from what the company reported a year ago. Penn National Gaming currently has a Zacks Rank of #3 (Hold).

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