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BGSF (BGSF) Surges 12.9%: Is This an Indication of Further Gains?

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BGSF (BGSF - Free Report) shares ended the last trading session 12.9% higher at $6.31. 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 25.6% gain over the past four weeks.

Yesterday's big surge was driven primarily by news that BGSF had agreed to sell its Professional Division, with its IT consulting, finance & accounting, managed solutions, and near/offshore software services, to INSPYR Solutions for $99 million in all-cash.

 

This staffing company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $66.5 million, down 2.4% 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 BGSF, the consensus EPS estimate for the quarter has been revised 100% 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 BGSF going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

BGSF is a member of the Zacks Business - Services industry. One other stock in the same industry, Crawford & Company B (CRD.B - Free Report) , finished the last trading session 2.2% higher at $10.19. CRD.B has returned -0.9% over the past month.

Crawford & Company B's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.24. Compared to the company's year-ago EPS, this represents a change of -4%. Crawford & Company B currently boasts a Zacks Rank of #3 (Hold).


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