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PlayAGS (AGS) Soars 6.3%: Is Further Upside Left in the Stock?

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PlayAGS (AGS - Free Report) shares ended the last trading session 6.3% higher at $6.92. 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 0.8% gain over the past four weeks.

PlayAGS’s rally is largely driven by optimism regarding the company’s continued implementation of installed based optimization initiatives, strong pipeline of premium unit demand and supply chain normalization.

This gaming industry supplier is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +45.5%. Revenues are expected to be $77.65 million, up 6.6% 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 PlayAGS, the consensus EPS estimate for the quarter has been revised 45.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AGS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PlayAGS is part of the Zacks Gaming industry. Monarch Casino (MCRI - Free Report) , another stock in the same industry, closed the last trading session 3.2% higher at $72.41. MCRI has returned -11.6% in the past month.

For Monarch Casino, the consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $1.01. This represents a change of +9.8% from what the company reported a year ago. Monarch Casino currently has a Zacks Rank of #3 (Hold).

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