Bally's (BALY) Surges 6.4%: Is This an Indication of Further Gains?

Bally's (BALY) shares soared 6.4% in the last trading session to close at $13.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.6% gain over the past four weeks.

Bally’s recent stock rally likely reflects investor enthusiasm surrounding the company’s strategic transformation and improving business outlook. The planned sale of Bally’s International Interactive to Intralot for €2.7 billion has been perceived as a value-creating move that boosts liquidity and strengthens the balance sheet. At the same time, the company’s steady progress on major development projects, including the permanent Chicago resort and the proposed Bronx casino, is reinforcing confidence in its long-term expansion strategy. Additionally, improving performance in its interactive segment and disciplined capital management are enhancing market sentiment. These developments collectively signal growing investor confidence in Bally’s ability to unlock value, streamline operations, and sustain future growth.

This casino operator is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of +63.8%. Revenues are expected to be $660.55 million, up 4.9% 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 Bally's, 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 BALY 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 >>>>

Bally's is part of the Zacks Gaming industry. Flutter Entertainment (FLUT), another stock in the same industry, closed the last trading session 2.7% higher at $256.3. FLUT has returned -14.6% in the past month.

Flutter's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.77. Compared to the company's year-ago EPS, this represents a change of +79.1%. Flutter currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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