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Guild Holdings Company (GHLD) Surges 9.1%: Is This an Indication of Further Gains?

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Guild Holdings Company (GHLD - Free Report) shares soared 9.1% in the last trading session to close at $11.73. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.8% loss over the past four weeks.

Increased optimism over the company's growing network of loan officers, strong focus on the purchase mortgage market and innovative new products are driving the stock higher. Expanding its footprint within current markets and venturing into new ones through strategic acquisitions and team expansions are aiding its performance. Also, GHLD's synergistic business model is benefiting the Servicing Segment.

This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of -55%. Revenues are expected to be $211.38 million, down 19.1% 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 Guild Holdings Company, 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 GHLD 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 >>>>

Guild Holdings Company is a member of the Zacks Financial - Miscellaneous Services industry. One other stock in the same industry, Triumph Financial (TFIN - Free Report) , finished the last trading session 1.6% lower at $60.77. TFIN has returned -4.9% over the past month.

Triumph Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. Compared to the company's year-ago EPS, this represents a change of -40.3%. Triumph Financial currently boasts a Zacks Rank of #3 (Hold).

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