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Can The ONE Group Hospitality (STKS) Run Higher on Rising Earnings Estimates?
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Investors might want to bet on The ONE Group Hospitality, Inc. (STKS - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For The ONE Group Hospitality, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $0.06 per share for the current quarter, which represents a year-over-year change of 0%.
Over the last 30 days, one estimate has moved higher for The ONE Group Hospitality compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 200%.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $0.43 per share, representing a year-over-year change of +79.17%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for The ONE Group Hospitality. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 112.5%.
Favorable Zacks Rank
The promising estimate revisions have helped The ONE Group Hospitality earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on The ONE Group Hospitality because of its solid estimate revisions, as evident from the stock's 8.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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Can The ONE Group Hospitality (STKS) Run Higher on Rising Earnings Estimates?
Investors might want to bet on The ONE Group Hospitality, Inc. (STKS - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For The ONE Group Hospitality, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $0.06 per share for the current quarter, which represents a year-over-year change of 0%.
Over the last 30 days, one estimate has moved higher for The ONE Group Hospitality compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 200%.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $0.43 per share, representing a year-over-year change of +79.17%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for The ONE Group Hospitality. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 112.5%.
Favorable Zacks Rank
The promising estimate revisions have helped The ONE Group Hospitality earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on The ONE Group Hospitality because of its solid estimate revisions, as evident from the stock's 8.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.