Back to top

Image: Bigstock

IGT (IGT) Moves 6.7% Higher: Will This Strength Last?

Read MoreHide Full Article

International Game Technology (IGT - Free Report) shares ended the last trading session 6.7% higher at $18. 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 6% loss over the past four weeks.

IGT’s rally is buoyed by optimism regarding the lottery industry’s transition into a quasi-privatized operation. Positive investor sentiments were witnessed on the idea of transferring lottery sales, marketing and management functions from states to private companies in exchange for an upfront payment and a promise to generate a minimum net income for the state.

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.

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 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, Wynn Resorts (WYNN - Free Report) , closed the last trading session 2.2% higher at $55.47. Over the past month, WYNN has returned -0.4%.

For Wynn, the consensus EPS estimate for the upcoming report has changed +8.5% over the past month to -$0.91. This represents a change of +18.8% from what the company reported a year ago. Wynn currently has a Zacks Rank of #3 (Hold).

In-Depth Zacks Research for the Tickers Above

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

International Game Technology (IGT) - free report >>

Wynn Resorts, Limited (WYNN) - free report >>

Published in