Back to top

Image: Bigstock

Target Hospitality (TH) Soars 22.2%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

Target Hospitality (TH - Free Report) shares soared 22.2% in the last trading session to close at $6.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 27.7% loss over the past four weeks.

Target Hospitality’s shares have appreciated after the company announced that it inked a prolonged lease and services agreement. Per the agreement, it will deliver improved infrastructure and comprehensive facility services to its major national non-profit partner and the U.S. Government in their humanitarian aid missions.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +400%. Revenues are expected to be $82.67 million, up 10.2% 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 Target Hospitality, 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 TH 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 >>>>

Target Hospitality is a member of the Zacks Leisure and Recreation Services industry. One other stock in the same industry, Planet Fitness (PLNT - Free Report) , finished the last trading session 3.8% higher at $73.14. PLNT has returned -2% over the past month.

Planet Fitness' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Compared to the company's year-ago EPS, this represents a change of +76.2%. Planet Fitness currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Planet Fitness, Inc. (PLNT) - free report >>

Target Hospitality Corp. (TH) - free report >>

Published in