Franklin Covey (FC) Surges 11.5%: Is This an Indication of Further Gains?

Franklin Covey (FC) shares soared 11.5% in the last trading session to close at $13.59. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.3% loss over the past four weeks.

The stock is benefiting from a technical rebound after a prolonged decline, improving investor sentiment, and positioning by traders ahead of upcoming earnings, with some bottom-fishing activity adding momentum.

This corporate training and consultanting company is expected to post quarterly loss of $0.00 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $58.48 million, down 1.9% 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 Franklin Covey, the consensus EPS estimate for the quarter has been revised 7.3% 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 FC going forward to see if this recent jump can turn into more strength down the road.

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 >>>>

Franklin Covey belongs to the Zacks Consulting Services industry. Another stock from the same industry, Hackett Group (HCKT), closed the last trading session 1.9% higher at $13.43. Over the past month, HCKT has returned -5.6%.

For Hackett Group, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.35. This represents a change of -14.6% from what the company reported a year ago. Hackett Group currently has a Zacks Rank of #5 (Strong Sell).

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

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