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Overstock (OSTK) Soars 6.6%: Is Further Upside Left in the Stock?

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Overstock.com shares rallied 6.6% in the last trading session to close at $22.35. 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 13.8% gain over the past four weeks.

The upswing in Overstock's shares can be attributed to its plan to buy certain assets of Bed Bath & Beyond Inc. Assets include intellectual property, business data, rights to mobile applications, and certain contracts and other related assets. OSTK will also assume certain liabilities.

This online discount retailer is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -147.4%. Revenues are expected to be $404.89 million, down 23.3% 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 Overstock, 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 OSTK 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 >>>>

Overstock is part of the Zacks Internet - Commerce industry. TripAdvisor (TRIP - Free Report) , another stock in the same industry, closed the last trading session 1.6% lower at $16.69. TRIP has returned 8.7% in the past month.

TripAdvisor's consensus EPS estimate for the upcoming report has changed -3.8% over the past month to $0.37. Compared to the company's year-ago EPS, this represents no change. TripAdvisor currently boasts a Zacks Rank of #3 (Hold).


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