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Lincoln Educational Services (LINC) Surges 5.2%: Is This an Indication of Further Gains?

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Lincoln Educational Services Corporation (LINC - Free Report) shares soared 5.2% in the last trading session to close at $16.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3% loss over the past four weeks.

Lincoln shares have been gaining on the optimism surrounding on America’s growing preference for alternative education and training programs to the traditional four-year college education. The demand strength, paired with its Lincoln 10.0 hybrid teaching platform and corporate partnerships, is fueling the growth trend and positioning LINC well to reach its long-term targets.

This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $113.42 million, up 9.7% 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 Lincoln Educational Services, the consensus EPS estimate for the quarter has been revised 29.2% 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 LINC 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 >>>>

Lincoln Educational Services is a member of the Zacks Schools industry. One other stock in the same industry, Laureate Education (LAUR - Free Report) , finished the last trading session 1.4% lower at $18.71. LAUR has returned -2.3% over the past month.

For Laureate Education, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. This represents a change of -14.3% from what the company reported a year ago. Laureate Education currently has a Zacks Rank of #1 (Strong Buy).


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