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McGraw Hill, Inc. (MH) Surges 7.1%: Is This an Indication of Further Gains?

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McGraw Hill, Inc. (MH - Free Report) shares soared 7.1% in the last trading session to close at $14.2. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% loss over the past four weeks.

MH stock is expected to have jumped upon its recent refinancing and deleveraging developments. The company’s refinancing efforts extended debt maturities, reduced borrowing costs on its revolving credit facility and improved financial flexibility. These actions are likely to have supported investor confidence in its balance-sheet position.

This company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -47.9%. Revenues are expected to be $629.53 million, down 5.9% 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 McGraw Hill, Inc., 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 MH 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 >>>>

McGraw Hill, Inc. is a member of the Zacks Schools industry. One other stock in the same industry, KinderCare Learning Companies, Inc. (KLC - Free Report) , finished the last trading session 1.1% higher at $1.83. KLC has returned -22.7% over the past month.

KinderCare Learning Companies, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. Compared to the company's year-ago EPS, this represents a change of -107.7%. KinderCare Learning Companies, Inc. currently boasts a Zacks Rank of #4 (Sell).

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