TKO Group Holdings TKO shares rallied 3.3% in the last trading session to close at $195.41. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.5% loss over the past four weeks.
TKO Group shares are benefiting from transformational media rights deals, accelerating partnership momentum and expanding high-margin contractual revenue streams across its live events portfolio.
This producer of professional wrestling events and television shows is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +30.4%. Revenues are expected to be $1.6 billion, up 26% 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 TKO Group, the consensus EPS estimate for the quarter has been revised 26.5% 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 TKO 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 >>>>
TKO Group belongs to the Zacks Film and Television Production and Distribution industry. Another stock from the same industry, Imax IMAX, closed the last trading session 2.8% higher at $37.56. Over the past month, IMAX has returned -14.7%.
For Imax, the consensus EPS estimate for the upcoming report has changed -20% over the past month to $0.23. This represents a change of +76.9% from what the company reported a year ago. Imax currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
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