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Strength Seen in Lands' End (LE): Can Its 6.8% Jump Turn into More Strength?
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Lands' End (LE - Free Report) shares soared 6.8% in the last trading session to close at $42.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.6% gain over the past four weeks.
Shares of Lands' End have been surging owing to the optimism surrounding the reopening of the economy. As pandemic-led restrictions ease and outdoor movement gathers pace, consumers are spending more on apparel items and refreshing their wardrobes. Such trends are continuing to drive Lands’ End business.
Sturdy global e-commerce business coupled with faster-than-expected recovery in the Outfitters business category, especially National Accounts and school uniforms have been contributing to top-line performance. Prudent promotional strategies and enhanced data analytics capabilities are continuing to aid gross margin growth as well as adjusted EBITDA.
In the recent past, Lands' End guided second-quarter fiscal 2021 net revenues in the range of $380-$385 million, which suggests growth of 21.8-23.4%. The company projected earnings in the bracket of $0.39-$0.43 per share for the quarter.
This clothing maker is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +230.8%. Revenues are expected to be $384.2 million, up 23.1% 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 Lands' End, the consensus EPS estimate for the quarter has been revised 20.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LE going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Strength Seen in Lands' End (LE): Can Its 6.8% Jump Turn into More Strength?
Lands' End (LE - Free Report) shares soared 6.8% in the last trading session to close at $42.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.6% gain over the past four weeks.
Shares of Lands' End have been surging owing to the optimism surrounding the reopening of the economy. As pandemic-led restrictions ease and outdoor movement gathers pace, consumers are spending more on apparel items and refreshing their wardrobes. Such trends are continuing to drive Lands’ End business.
Sturdy global e-commerce business coupled with faster-than-expected recovery in the Outfitters business category, especially National Accounts and school uniforms have been contributing to top-line performance. Prudent promotional strategies and enhanced data analytics capabilities are continuing to aid gross margin growth as well as adjusted EBITDA.
In the recent past, Lands' End guided second-quarter fiscal 2021 net revenues in the range of $380-$385 million, which suggests growth of 21.8-23.4%. The company projected earnings in the bracket of $0.39-$0.43 per share for the quarter.
This clothing maker is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +230.8%. Revenues are expected to be $384.2 million, up 23.1% 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 Lands' End, the consensus EPS estimate for the quarter has been revised 20.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>