Xponential Fitness (XPOF) shares soared 35.4% in the last trading session to close at $10.1. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% loss over the past four weeks.
Shares of Xponential Fitness are likely to have gained following the end of the SEC probe, which concluded with no enforcement action. The investigation, which began in December 2023, had raised concerns over potential securities fraud and accounting issues. With the matter now resolved, investor sentiment appears to have improved, supporting the sharp rise in the stock.
This franchisor of boutique fitness brands is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +600%. Revenues are expected to be $77.16 million, up 0.8% 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 Xponential Fitness, 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 XPOF 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 >>>>
Xponential Fitness belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, OneSpaWorld (OSW), closed the last trading session 1.5% higher at $21.39. Over the past month, OSW has returned 11.1%.
OneSpaWorld's consensus EPS estimate for the upcoming report has changed +2.6% over the past month to $0.24. Compared to the company's year-ago EPS, this represents a change of +20%. OneSpaWorld currently boasts a Zacks Rank of #2 (Buy).
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Xponential Fitness, Inc. (XPOF): Free Stock Analysis Report OneSpaWorld Holdings Limited (OSW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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