Strength Seen in Boyd Group Services Inc. (BGSI): Can Its 4.3% Jump Turn into More Strength?

Boyd Group Services Inc. BGSI shares soared 4.3% in the last trading session to close at $178.3. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.5% gain over the past four weeks.

Boyd Group’s acquisition of Joe Hudson’s Collision Center meaningfully strengthens its strategic positioning by expanding its footprint across the high-growth U.S. Southeast region. The added scale and increased regional density should enhance Boyd’s competitive reach and improve operational efficiency through the realization of cost synergies.

This company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +117.2%. Revenues are expected to be $842.5 million, up 12% 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 Boyd Group Services Inc., 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 BGSI 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 >>>>

Boyd Group Services Inc. belongs to the Zacks Consumer Products - Staples industry. Another stock from the same industry, BJ's Wholesale Club BJ, closed the last trading session 1.1% higher at $100.4. Over the past month, BJ has returned 10.1%.

BJ's' consensus EPS estimate for the upcoming report has changed -0.5% over the past month to $0.92. Compared to the company's year-ago EPS, this represents a change of -1.1%. BJ's 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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