Gildan Activewear (GIL) shares soared 9.1% in the last trading session to close at $41.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.5% loss over the past four weeks.
Gildan’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 outstanding performance, fueled by market share expansion, strong sales growth and enhanced operational efficiency, is further driving its upward momentum.
This apparel maker is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of -3.4%. Revenues are expected to be $709.55 million, up 2% 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 Gildan, 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 GIL 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 >>>>
Gildan is a member of the Zacks Textile - Apparel industry. One other stock in the same industry, Savers Value Village (SVV), finished the last trading session 12.2% higher at $8.30. SVV has returned 8.2% over the past month.
Savers Value's consensus EPS estimate for the upcoming report has changed -19% over the past month to $0.01. Compared to the company's year-ago EPS, this represents a change of -87.5%. Savers Value currently boasts a Zacks Rank of #3 (Hold).
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Gildan Activewear, Inc. (GIL): Free Stock Analysis Report Savers Value Village, Inc. (SVV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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