Yahoo Finance Strength Seen in Six Flags (SIX): Can Its 5.8% Jump Turn into More Strength?
Six Flags (SIX) shares ended the last trading session 5.8% higher at $31.98. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.7% gain over the past four weeks.
Six Flags' shares surged following the confirmation of its merger with Cedar Fair on July 1, 2024. The company clarified the new corporate setup, confirming that the combined entity will retain the Six Flags name and trade under the ticker symbol "FUN" on the NYSE. Additionally, Six Flags declared a special dividend of $1.53 per share of common stock, payable on July 1 to shareholders recorded as of June 28, contingent upon the merger's completion. The reassurance of stable leadership and expected synergies resulting from merger are likely to have contributed to increased investor confidence.
This amusement park operator is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +148%. Revenues are expected to be $447.86 million, up 0.9% 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 Six Flags, the consensus EPS estimate for the quarter has been revised 2.9% 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 SIX 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 >>>>
Six Flags belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Xponential Fitness (XPOF), closed the last trading session 0.5% lower at $15.05. Over the past month, XPOF has returned 77.8%.
Xponential Fitness' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. Compared to the company's year-ago EPS, this represents a change of +171.4%. Xponential Fitness currently boasts a Zacks Rank of #3 (Hold).
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