Despegar.com (DESP) Sees Significant Stock Surge of 7.4%
Despegar.com (DESP) shares ended the last trading session 7.4% higher at $14.18, driven by impressive trading volume and a higher-than-average number of shares exchanged. This marks a notable increase compared to the stock’s prior 5.2% gain over the past month.
Strong Financial Performance Fuels Growth
The online travel company has boosted its revenues through a strong Take Rate, which is calculated as revenue divided by the total of Gross Bookings and Total Payment Volume. Gross bookings have also shown notable strength for DESP. Furthermore, its recent partnership with Nubank has expanded its customer reach, contributing to a remarkable 50% gain in shares year to date.
Looking ahead, Despegar.com is expected to report quarterly earnings of $0.20 per share, reflecting a substantial year-over-year growth of 66.7%. Projected revenues stand at $190.59 million, showing a 7% increase from the same quarter last year.
Understanding Earnings Estimate Revisions
While understanding earnings and revenue growth trends is crucial for evaluating a stock’s potential, historical data indicates a strong link between changes in earnings estimates and short-term stock price movements. For Despegar.com, the consensus EPS estimate has remained stable over the last month. Typically, a stock’s price will not sustain a rise without a trend in earnings estimate revisions, making it essential to monitor DESP to see if this uptick translates to longer-term strength.
The stock currently holds a Zacks Rank #3 (Hold). For those interested, the complete list of today’s Zacks Rank #1 (Strong Buy) stocks can be found here.
Despegar.com is part of the Zacks Transportation – Services industry, which includes Universal Logistics (ULH). ULH ended the last trading session up 0.3% at $45.64 and has recorded a return of 5.1% over the past month.
For Universal Truckload, the consensus EPS estimate for its upcoming report has remained at $1.18, reflecting a 34.1% increase compared to the previous year. Similar to Despegar.com, Universal Truckload holds a Zacks Rank of #3 (Hold).
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Despegar.com Corp. (DESP): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
