GeminiGEMI shares ended the last trading session 31.2% higher at $5.81. 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 7% gain over the past four weeks.
The increased investor optimism in the stock can be attributed to the SEC's recent announcement of its five-year "Innovation Exemption," which allows qualifying venues to facilitate trading in tokenized U.S. stocks and could potentially create a new business opportunity for GEMI.
This crypto exchange is expected to post quarterly loss of $1.12 per share in its upcoming report, which represents a year-over-year change of +38.1%. Revenues are expected to be $47.19 million, down 6.8% 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 Gemini, the consensus estimate for earnings per share (EPS) 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 GEMI 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 >>>>
Gemini belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Blackstone Inc.BX, closed the last trading session 0.4% lower at $124.96. Over the past month, BX has returned -11.3%.
Blackstone Inc.'s consensus estimate for EPS for the upcoming report has changed -0.8% over the past month to $1.36. Compared to the company's year-ago EPS, this represents a change of -10.5%. Blackstone Inc. currently boasts a Zacks Rank of #3 (Hold).
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Gemini Space Station, Inc. (GEMI) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
