Core Scientific, Inc. (CORZ) Moves 33.0% Higher: Will This Strength Last?

Core Scientific, Inc. (CORZ) shares soared 33% in the last trading session to close at $16.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.1% gain over the past four weeks.

The recent surge in Core Scientific shares can be attributed to renewed buyout talks with CoreWeave, an AI cloud infrastructure provider. According to reports, CoreWeave has re-entered advanced negotiations to acquire Core Scientific, reigniting investor excitement just months after its initial offer was rejected. This time, with Core Scientific’s market cap now exceeding $3.7 billion, the expected deal could come at a much higher premium. Investors are optimistic that a potential acquisition would unlock significant value, especially given Core Scientific’s pivotal role in AI infrastructure and high-performance computing.

This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of -75%. Revenues are expected to be $83.33 million, down 41% 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 Core Scientific, Inc., the consensus EPS estimate for the quarter has been revised 2.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CORZ 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 >>>>

Core Scientific, Inc. belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, PJT Partners (PJT), closed the last trading session 2.5% higher at $166.36. Over the past month, PJT has returned 7.5%.

For PJT Partners, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.11. This represents a change of -6.7% from what the company reported a year ago. PJT Partners currently has a Zacks Rank of #2 (Buy).

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

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