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Skyline (SKY) Stock Jumps 7.5%: Will It Continue to Soar?

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Skyline (SKY - Free Report) shares ended the last trading session 7.5% higher at $71.28. 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 16.8% loss over the past four weeks.

Shares of SKY are expected to have gained on the back of an easing inflation scenario as of May 2024, as released by the U.S. Bureau of Labor Statistics.

This manufactured and modular housing maker is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -22.5%. Revenues are expected to be $606.2 million, up 30.4% 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 Skyline, the consensus EPS estimate for the quarter has been revised 4.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SKY 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 >>>>

Skyline belongs to the Zacks Building Products - Mobile Homes and RV Builders industry. Another stock from the same industry, Patrick Industries (PATK - Free Report) , closed the last trading session 2.2% higher at $106.82. Over the past month, PATK has returned -10.2%.

Patrick Industries' consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $2.03. Compared to the company's year-ago EPS, this represents a change of +4.6%. Patrick Industries currently boasts a Zacks Rank of #3 (Hold).

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