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Sweetgreen, Inc. (SG) Moves 15.5% Higher: Will This Strength Last?

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Sweetgreen, Inc. (SG - Free Report) shares soared 15.5% in the last trading session to close at $15.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.3% gain over the past four weeks.

Increased guest traffic backed by its newly launched loyalty program, Sweetpass and an expansive menu offering have been boosting investors’ confidence. Moreover, menu price increase and restaurant expansion initiatives also bode well.

This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +44.4%. Revenues are expected to be $154.59 million, up 23.8% 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 Sweetgreen, Inc., the consensus EPS estimate for the quarter has been revised 12.9% 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 SG 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 >>>>

Sweetgreen, Inc. is part of the Zacks Retail - Restaurants industry. Chuy's Holdings , another stock in the same industry, closed the last trading session 1% lower at $39.60. CHUY has returned -7% in the past month.

Chuy's' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.53. Compared to the company's year-ago EPS, this represents a change of +20.5%. Chuy's currently boasts a Zacks Rank of #2 (Buy).


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