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Endeavor (EDR) Moves 6.6% Higher: Will This Strength Last?

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Endeavor Group (EDR - Free Report) shares ended the last trading session 6.6% higher at $24.57. 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 1.7% loss over the past four weeks.

Silver Lake Management is reportedly planning to sell parts of EDR after it takes the company private. Silver Lake holds a 71% voting stake in Endeavor. The company is progressing with its plans announced in October, in which it said it was evaluating strategic options. This was due to the company's stock performance, with shares trading below its $24 IPO price from almost three years ago.

This entertainment, sport and content company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +262.5%. Revenues are expected to be $1.49 billion, up 17.9% 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 Endeavor, the consensus EPS estimate for the quarter has been revised 28.1% 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 EDR 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 >>>>

Endeavor belongs to the Zacks Media Conglomerates industry. Another stock from the same industry, Sphere Entertainment (SPHR - Free Report) , closed the last trading session 3.3% higher at $31.68. Over the past month, SPHR has returned -13.1%.

Sphere Entertainment's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.73. Compared to the company's year-ago EPS, this represents a change of -132.4%. Sphere Entertainment currently boasts a Zacks Rank of #1 (Strong Buy).


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