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Vita Coco Company, Inc. (COCO) Surges 6.3%: Is This an Indication of Further Gains?

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Vita Coco Company, Inc. (COCO - Free Report) shares ended the last trading session 6.3% higher at $20.83. 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 17.7% gain over the past four weeks.

The company has been gaining from its sturdy brand performance and the easing of supply-chain disruptions. Management remains optimistic about its Vita Coco brand.  The company’s margins are being driven by pricing efforts and cost-reduction actions.

This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $103.25 million, up 7.1% 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 Vita Coco Company, Inc., the consensus EPS estimate for the quarter has been revised 6.7% 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 COCO 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 >>>>

Vita Coco Company, Inc. is part of the Zacks Beverages - Soft drinks industry. Dutch Bros (BROS - Free Report) , another stock in the same industry, closed the last trading session 1% lower at $31.89. BROS has returned -4.1% in the past month.

Dutch Bros' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. Compared to the company's year-ago EPS, this represents a change of -50%. Dutch Bros currently boasts a Zacks Rank of #3 (Hold).


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