Strength Seen in Despegar.com (DESP): Can Its 7.4% Jump Turn into More Strength?
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Despegar.com (DESP) shares ended the last trading session 7.4% higher at $14.18. 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 5.2% gain over the past four weeks.
Despegar.com is being aided by robust revenues driven by strong Take Rate (defined as revenue divided by the sum of Gross Bookings and Total Payment Volume). Gross bookings are also very strong at DESP. Despegar.com's recent agreement with Nubank has widened its customer base. Driven by the positives, DESP's shares have gained 50% year to date.
This online travel company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $190.59 million, up 7% 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 Despegar.com, 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 DESP 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 >>>>
Despegar.com is part of the Zacks Transportation - Services industry. Universal Logistics (ULH), another stock in the same industry, closed the last trading session 0.3% higher at $45.64. ULH has returned 5.1% in the past month.
For Universal Truckload , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.18. This represents a change of +34.1% from what the company reported a year ago. Universal Truckload currently has a Zacks Rank of #3 (Hold).
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Despegar.com Corp. (DESP) : Free Stock Analysis Report
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