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Strength Seen in Playa Hotels (PLYA): Can Its 5.3% Jump Turn into More Strength?

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Playa Hotels & Resorts (PLYA - Free Report) shares rallied 5.3% in the last trading session to close at $7.58. 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 10.3% gain over the past four weeks.

Playa Hotels & Resorts rally is largely driven by optimism regarding the company’s pent-up consumer demand and improving booking trends. Also, attributes such as increased flight capacity and the removal of Jamaica’s COVID testing entry requirements bodes well.

This developer and operator of all-inclusive resorts is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $177.93 million, up 0.6% 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 Playa Hotels, 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 PLYA 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 >>>>

Playa Hotels is part of the Zacks Hotels and Motels industry. Bally's Corporation (BALY - Free Report) , another stock in the same industry, closed the last trading session 2% higher at $19.87. BALY has returned 0.6% in the past month.

For Bally's, the consensus EPS estimate for the upcoming report has changed -6.8% over the past month to $0.02. This represents no change from what the company reported a year ago. Bally's currently has a Zacks Rank of #5 (Strong Sell).

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