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Atlanticus Holdings Corporation (ATLC) Surges 12.5%: Is This an Indication of Further Gains?

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Atlanticus Holdings Corporation (ATLC - Free Report) shares ended the last trading session 12.5% higher at $35.88. 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 17.6% gain over the past four weeks.

While the Federal Reserve raised the interest rates at the end of two-day FOMC meeting earlier this week, the officials acknowledged “the disinflationary process has started.” This indicates that the central bank is likely to end interest rate hikes soon. Thus, investors turned bullish, driving the ATLC stock higher.

This company is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of -28.6%. Revenues are expected to be $294.59 million, up 36.1% 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 Atlanticus Holdings Corporation, 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 ATLC 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 >>>>

Atlanticus Holdings Corporation belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Rithm (RITM - Free Report) , closed the last trading session 0.8% higher at $9.58. Over the past month, RITM has returned 12.6%.

For Rithm, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. This represents a change of -27.5% from what the company reported a year ago. Rithm currently has a Zacks Rank of #3 (Hold).

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