Strength Seen in Rush Street Interactive (RSI): Can Its 6.2% Jump Turn into More Strength?

Core Viewpoint - Rush Street Interactive, Inc. (RSI) has shown strong momentum in its online casino and betting businesses, leading to a significant increase in stock price and positive investor sentiment [2][4]. Company Performance - RSI shares increased by 6.2% to $17.78 in the last trading session, following a 13.8% loss over the previous four weeks, indicating a recovery in stock performance [1]. - The company is projected to report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of 42.9%, with revenues expected to reach $307.81 million, up 21.1% from the same quarter last year [2]. Earnings Estimates - The consensus EPS estimate for RSI has been revised 14.3% higher in the last 30 days, suggesting a positive trend that typically correlates with stock price appreciation [4]. - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring these trends for investment decisions [3]. Industry Context - RSI is part of the Zacks Gaming industry, which includes other companies like Bally's (BALY), whose stock has underperformed recently, closing 1.3% lower at $15.03 with a month-to-date return of -7.8% [5]. - Bally's consensus EPS estimate has decreased by 5.6% over the past month, indicating a significant decline compared to the previous year's EPS [6].