Carlyle (CG) Surges 11.7%: Is This an Indication of Further Gains?

Carlyle Group (CG Quick QuoteCG – Free Report) shares rallied 11.7% in the last trading session to close at $39.56. 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 13.8% loss over the past four weeks.

Carlyle’s significant stock price surge follows a broader market rally driven by optimism surrounding President Donald Trump’s announcement of a 90-day suspension of reciprocal tariffs for most trading partners, excluding China. The tariff pause lessened investor concerns about mounting trade tensions, leading to a broad market rally. Carlyle’s substantial gain reflects its sensitivity to market conditions and investor sentiment, benefiting from the better outlook following the tariff suspension.

This asset management firm is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of -4%. Revenues are expected to be $987.74 million, down 3.5% 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 Carlyle, the consensus EPS estimate for the quarter has been revised 1% 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 CG 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 >>>>

Carlyle is part of the Zacks Financial – Investment Management industry. Affiliated Managers Group (AMG Quick QuoteAMG – Free Report) , another stock in the same industry, closed the last trading session 11.5% higher at $159.83. AMG has returned -10.5% in the past month.

Affiliated Managers’ consensus EPS estimate for the upcoming report has remained unchanged over the past month at $5.13. Compared to the company’s year-ago EPS, this represents a change of -4.5%. Affiliated Managers currently boasts a Zacks Rank of #3 (Hold).