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Champion Homes (SKY) shares ended the last trading session 5.2% higher at $90.43. 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 17.3% loss over the past four weeks.
This modular homebuilding company is driving on the back of its digital direct-to-consumer strategy and retail footprint expansion amid an improving housing market in the United States. Furthermore, the investors’ sentiments are also likely to have been boosted by the realization of benefits from the Regional Homes acquisition.
This manufactured and modular housing maker is expected to post quarterly earnings of $0.79 per share in its upcoming report, which represents a year-over-year change of -3.7%. Revenues are expected to be $592.35 million, up 5.9% 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 Champion Homes, 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 SKY 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 >>>>
Champion Homes is a member of the Zacks Building Products - Mobile Homes and RV Builders industry. One other stock in the same industry, Cavco (CVCO), finished the last trading session 1.9% higher at $447.28. CVCO has returned -11.8% over the past month.
Cavco's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.12. Compared to the company's year-ago EPS, this represents a change of -3.5%. Cavco currently boasts a Zacks Rank of #3 (Hold).
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Champion Homes, Inc. (SKY) : Free Stock Analysis Report
Cavco Industries, Inc. (CVCO) : Free Stock Analysis Report