Bally's (BALY) Moves 17.8% Higher: Will This Strength Last?

Bally's (BALY) shares rallied 17.8% in the last trading session to close at $15.08. 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 17.8% gain over the past four weeks.

Bally’s stock rally likely stems from renewed investor confidence over the completion of the sale of its international interactive business to Intralot S.A., a move widely seen as repositioning the company for accelerated digital and international expansion. The transaction allows Bally’s to retain majority ownership while unlocking significant liquidity, paving a path to strengthen its balance sheet and enhance strategic flexibility. Investors appear encouraged by the prospects of debt reduction, an improved capital structure and a sharper focus on high-growth gaming verticals. Overall, the move has shifted sentiment from concerns over leverage to confidence in Bally’s strategic turnaround and growth outlook.

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.

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 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 belongs to the Zacks Gaming industry. Another stock from the same industry, GDEV Inc. (GDEV), closed the last trading session 5% higher at $22.1. Over the past month, GDEV has returned -33.2%.

For GDEV Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.42. This represents a change of -46.8% from what the company reported a year ago. GDEV Inc. currently has a Zacks Rank of #1 (Strong Buy).

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

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