Warby Parker Inc. (WRBY) shares soared 15.8% in the last trading session to close at $16.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 31.4% loss over the past four weeks.
Warby Parker shares are gaining momentum, driven by renewed optimism in e-commerce growth, strategic new store openings, and strong unit economics. The company’s rising brand awareness and effective customer acquisition strategies are further fueling its upward trajectory.
This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $225.88 million, up 12.9% 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 Warby Parker, 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 WRBY 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 >>>>
Warby Parker is part of the Zacks Consumer Products - Staples industry. Grocery Outlet Holding Corp. (GO), another stock in the same industry, closed the last trading session 2.8% higher at $13.86. GO has returned 4.7% in the past month.
For Grocery Outlet
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Warby Parker Inc. (WRBY): Free Stock Analysis Report Grocery Outlet Holding Corp. (GO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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