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MGP (MGPI) Soars 7.1%: Is Further Upside Left in the Stock?
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MGP (MGPI - Free Report) shares soared 7.1% in the last trading session to close at $102.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.8% loss over the past four weeks.
MGP Ingredients has been benefiting from solid consumer demand for its Branded Spirits premium plus offerings – such as premium, super premium and ultra premium brands. The company’s strong marketing platform and go-to market strategy have been working well for its Ingredient Solutions segment. On its last earnings call, management raised its consolidated guidance for 2022, which instills optimism.
This producer of distillery and ingredients products used by the packaged goods industry is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -11.9%. Revenues are expected to be $193.33 million, up 9.5% 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 MGP, the consensus EPS estimate for the quarter has been revised 1.4% 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 MGPI going forward to see if this recent jump can turn into more strength down the road.
MGP is part of the Zacks Food - Miscellaneous industry. Aramark (ARMK - Free Report) , another stock in the same industry, closed the last trading session 1.2% higher at $34. ARMK has returned -11.7% in the past month.
For Aramark, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.50. This represents a change of +138.1% from what the company reported a year ago. Aramark currently has a Zacks Rank of #4 (Sell).
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MGP (MGPI) Soars 7.1%: Is Further Upside Left in the Stock?
MGP (MGPI - Free Report) shares soared 7.1% in the last trading session to close at $102.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.8% loss over the past four weeks.
MGP Ingredients has been benefiting from solid consumer demand for its Branded Spirits premium plus offerings – such as premium, super premium and ultra premium brands. The company’s strong marketing platform and go-to market strategy have been working well for its Ingredient Solutions segment. On its last earnings call, management raised its consolidated guidance for 2022, which instills optimism.
This producer of distillery and ingredients products used by the packaged goods industry is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -11.9%. Revenues are expected to be $193.33 million, up 9.5% 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 MGP, the consensus EPS estimate for the quarter has been revised 1.4% 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 MGPI 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 >>>>
MGP is part of the Zacks Food - Miscellaneous industry. Aramark (ARMK - Free Report) , another stock in the same industry, closed the last trading session 1.2% higher at $34. ARMK has returned -11.7% in the past month.
For Aramark, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.50. This represents a change of +138.1% from what the company reported a year ago. Aramark currently has a Zacks Rank of #4 (Sell).