Melco (MLCO) Soars 11.5%: Is Further Upside Left in the Stock?

Melco Resorts (MLCO) shares rallied 11.5% in the last trading session to close at $8.06. 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 15.1% gain over the past four weeks.Shares of Melco Resorts climbed after Macau regulators reported a sharp rise in gaming revenue for June. According to the Macau Gaming Inspection and Coordination Bureau, casino revenue surged 19% year-over-year to 21.06 billion Macanese patacas (approximately $2.61 billion), reflecting continued strength in the region’s post-pandemic recovery.This casino company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $1.2 billion, up 3.6% 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 Melco, the consensus EPS estimate for the quarter has been revised 50% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MLCO 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 >>>>Melco belongs to the Zacks Gaming industry. Another stock from the same industry, Churchill Downs (CHDN), closed the last trading session 3.2% higher at $104.2. Over the past month, CHDN has returned 8.9%.For Churchill Downs, the consensus EPS estimate for the upcoming report has changed -0.8% over the past month to $3. This represents a change of +3.8% from what the company reported a year ago. Churchill Downs currently has a Zacks Rank of #4 (Sell).Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Melco Resorts & Entertainment Limited (MLCO): Free Stock Analysis Report Churchill Downs, Incorporated (CHDN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks