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Blue Owl Capital (OWL) Surges 14.3%: Is This an Indication of Further Gains?

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Blue Owl Capital Inc. (OWL - Free Report) shares soared 14.3% in the last trading session to close at $18.20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.5% loss over the past four weeks.

Blue Owl Capital stock soared, driven by a substantial jump in the broad markets. The jump was fueled by President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered the investors, driving the OWL stock higher.

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +17.7%. Revenues are expected to be $645.56 million, up 32.7% 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 Blue Owl Capital, 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 OWL 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 >>>>

Blue Owl Capital belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Franklin Resources (BEN - Free Report) , closed the last trading session 11.5% higher at $18.58. Over the past month, BEN has returned -15.1%.

For Franklin Resources, the consensus EPS estimate for the upcoming report has changed -5.3% over the past month to $0.48. This represents a change of -14.3% from what the company reported a year ago. Franklin Resources currently has a Zacks Rank of #5 (Strong Sell).


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