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Strength Seen in Ambac (AMBC): Can Its 17.7% Jump Turn into More Strength?
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Ambac Financial Group (AMBC - Free Report) shares soared 17.7% in the last trading session to close at $8.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.2% gain over the past four weeks.
Ambac shares surged after the Wisconsin Office of the Commissioner of Insurance scheduled a hearing on the sale of Ambac Assurance Corporation. This is considered one of the final steps in the Wisconsin regulatory approval process. Ambac's president and CEO, Claude LeBlanc, is keen to complete the Sale and solidify the transition into an authentic specialty P&C insurance platform.
This bond insurer is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of -233.3%. Revenues are expected to be $55.59 million, down 47.1% 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 Ambac, the consensus EPS estimate for the quarter has been revised 25% 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 AMBC going forward to see if this recent jump can turn into more strength down the road.
Ambac is part of the Zacks Insurance - Property and Casualty industry. RLI Corp. (RLI - Free Report) , another stock in the same industry, closed the last trading session 0.1% lower at $70.35. RLI has returned -1.5% in the past month.
For RLI Corp., the consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $0.75. This represents a change of -12.8% from what the company reported a year ago. RLI Corp. currently has a Zacks Rank of #4 (Sell).
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Strength Seen in Ambac (AMBC): Can Its 17.7% Jump Turn into More Strength?
Ambac Financial Group (AMBC - Free Report) shares soared 17.7% in the last trading session to close at $8.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.2% gain over the past four weeks.
Ambac shares surged after the Wisconsin Office of the Commissioner of Insurance scheduled a hearing on the sale of Ambac Assurance Corporation. This is considered one of the final steps in the Wisconsin regulatory approval process. Ambac's president and CEO, Claude LeBlanc, is keen to complete the Sale and solidify the transition into an authentic specialty P&C insurance platform.
This bond insurer is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of -233.3%. Revenues are expected to be $55.59 million, down 47.1% 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 Ambac, the consensus EPS estimate for the quarter has been revised 25% 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 AMBC 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 >>>>
Ambac is part of the Zacks Insurance - Property and Casualty industry. RLI Corp. (RLI - Free Report) , another stock in the same industry, closed the last trading session 0.1% lower at $70.35. RLI has returned -1.5% in the past month.
For RLI Corp., the consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $0.75. This represents a change of -12.8% from what the company reported a year ago. RLI Corp. currently has a Zacks Rank of #4 (Sell).