Wolverine World Wide WWW shares ended the last trading session 7.2% higher at $23.36. 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 26.2% gain over the past four weeks.
Wolverine’s performance is supported by strong momentum in its Active Group, improved gross margin from lower discounting and supply chain gains, and solid international growth driven by a streamlined distribution network. Tariff mitigation through sourcing diversification and a strong capital structure further reinforce its financial stability.
This footwear maker is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +46.7%. Revenues are expected to be $446.48 million, up 5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Wolverine, the consensus EPS estimate for the quarter has been revised 4.1% 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 WWW 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 >>>>
Wolverine is part of the Zacks Shoes and Retail Apparel industry. Adidas AG ADDYY, another stock in the same industry, closed the last trading session 0.2% lower at $118.88. ADDYY has returned 2.9% in the past month.
Adidas' consensus EPS estimate for the upcoming report has changed -1.8% over the past month to $1.12. Compared to the company's year-ago EPS, this represents a change of +89.8%. Adidas currently boasts a Zacks Rank of #2 (Buy).
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Wolverine World Wide, Inc. (WWW): Free Stock Analysis Report Adidas AG (ADDYY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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