Revolve Group (RVLV) Soars 13.7%: Is Further Upside Left in the Stock?

Revolve Group (RVLV) shares ended the last trading session 13.7% higher at $21.69. 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 22.7% loss over the past four weeks.

Revolve’s stock gained momentum as investor sentiment improved amid a broader market rally, following President Donald Trump’s announcement of a 90-day pause on reciprocal tariffs for all countries except China. The company’s strategic focus on enhancing marketing and logistics efficiency, along with improvements in merchandising and product assortment, is further driving its upward momentum.

This online women's fashion retailer is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $296 million, up 9.4% 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 Revolve Group, 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 RVLV 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 >>>>

Revolve Group is part of the Zacks Textile - Apparel industry. Duluth Holdings (DLTH), another stock in the same industry, closed the last trading session 19.5% higher at $2.08. DLTH has returned -41.2% in the past month.

Duluth Holdings' consensus EPS estimate for the upcoming report has changed -11.1% over the past month to -$0.30. Compared to the company's year-ago EPS, this represents a change of -25%. Duluth Holdings currently boasts a Zacks Rank of #2 (Buy).

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

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