Envela (ELA) Moves 8.6% Higher: Will This Strength Last?

Envela Corporation ELA shares rallied 8.6% in the last trading session to close at $9.31. 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 8.8% gain over the past four weeks.

Envela’s performance appears supported by disciplined execution across its consumer and commercial operations. Management’s focus on optimizing the consumer business model while expanding the retail footprint underscores efforts to drive sustainable growth and operational efficiency. Meanwhile, the commercial segment’s growing contribution from its service-based returns business is enhancing profitability.

This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $51.68 million, up 10.2% 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 Envela, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ELA 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 >>>>

Envela is part of the Zacks Retail - Jewelry industry. Signet SIG, another stock in the same industry, closed the last trading session 0.4% lower at $102.85. SIG has returned 6.8% in the past month.

Signet's consensus EPS estimate for the upcoming report has changed -15.5% over the past month to $0.16. Compared to the company's year-ago EPS, this represents a change of -33.3%. Signet currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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