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GreenSky (GSKY) Moves 53.2% Higher: Will This Strength Last?


This story originally appeared on Zacks

GreenSky (GSKY) shares soared 53.2% in the trading session on Sep 15 to close at $11.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 2.5% loss over the past four weeks.

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This increased investor optimism can be attributed to the news of its merger with Goldman Sachs (GS) for $12.11 per share, representing a transaction value of $2.24 billion.

Price and Consensus

Price Consensus Chart for GSKY

This financial technology company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +333.3%. Revenues are expected to be $142.72 million, up 0.5% 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 GreenSky, the consensus EPS estimate for the quarter has been revised 26.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. However, as the stock is already near the offer price for its acquisition, the possibility of a price appreciation down the road is slim.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

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GreenSky, Inc. (GSKY): Free Stock Analysis Report
 
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