Savers Value Village (SVV – Free Report) shares ended the last trading session 8% higher at $7.68. 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 0.1% gain over the past four weeks.
SVV shares have been gaining on the optimism surrounding growth in its U.S. business, driven by increased transactions, average basket size and new store expansion. The company’s focus on competitive pricing and value offerings has resonated well with consumers. In addition, the sequential improvement in the Canadian business and continuous innovation in operations have further boosted investor confidence.
This retailer of second-hand merchandise is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -87.5%. Revenues are expected to be $365.68 million, up 3.3% 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 Savers Value, the consensus EPS estimate for the quarter has been revised 4.2% 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 SVV 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 >>>>
Savers Value is part of the Zacks Textile – Apparel industry. Gildan Activewear (GIL – Free Report) , another stock in the same industry, closed the last trading session 4.8% lower at $39.78. GIL has returned -16.9% in the past month.
For Gildan
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