Civeo (CVEO – Free Report) shares rallied 7.5% in the last trading session to close at $26.90. 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 1.6% gain over the past four weeks.
Shares of Civeo surged following the announcement of a definitive asset purchase agreement with a private seller. The deal includes the acquisition of four villages in Australia’s Bowen Basin, adding 1,340 rooms along with long-term customer contracts.
This provider of remote-site workforce housing is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -666.7%. Revenues are expected to be $166.15 million, down 2.7% 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 Civeo, 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 CVEO 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 >>>>
Civeo is a member of the Zacks Hotels and Motels industry. One other stock in the same industry, Playa Hotels & Resorts (PLYA – Free Report) , finished the last trading session 0.2% higher at $13.34. PLYA has returned 7% over the past month.
For Playa Hotels
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