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Strength Seen in TAL Education (TAL): Can Its 6.7% Jump Turn into More Strength?

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TAL Education (TAL - Free Report) shares rallied 6.7% in the last trading session to close at $8.62. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.6% loss over the past four weeks.

The stock surged after China's central bank announced its largest stimulus since the pandemic on Tuesday, aiming to lift the economy out of deflation and steer it back toward the government's growth target.

This education services provider is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $601.6 million, up 46% 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 TAL Education, 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 TAL 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 >>>>

TAL Education is part of the Zacks Schools industry. Lincoln Educational Services Corporation (LINC - Free Report) , another stock in the same industry, closed the last trading session 1.6% lower at $12.10. LINC has returned -1.1% in the past month.

Lincoln Educational Services' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.14. Compared to the company's year-ago EPS, this represents a change of +27.3%. Lincoln Educational Services currently boasts a Zacks Rank of #2 (Buy).


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