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J.Jill (JILL) Surges 5.8%: Is This an Indication of Further Gains?

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J.Jill (JILL - Free Report) shares soared 5.8% in the last trading session to close at $36.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.4% loss over the past four weeks.

J.Jill has strategically used proceeds from a recent equity offering to make a substantial repayment on its debt. By voluntarily paying down $27.2 million of its term loan, the company reduced its outstanding debt to $81 million. This move reflects the company's focus on improving its financial health by reducing debt and interest expenses. CEO Claire Spofford's comments indicate that J.Jill aims to strengthen its balance sheet and achieve positive net cash flow, positioning itself for sustainable growth and investment in future initiatives. Recently, Claire Spofford sold 20,000 shares of the company at a price of $33.83 per share.

This retailer of women's clothes, shoes and accessories is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of -12.7%. Revenues are expected to be $153.95 million, down 1.1% 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 J.Jill, the consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on JILL 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 >>>>

J.Jill belongs to the Zacks Retail - Apparel and Shoes industry. Another stock from the same industry, Lulu's Fashion Lounge Holdings, Inc. (LVLU - Free Report) , closed the last trading session 4.1% lower at $1.65. Over the past month, LVLU has returned -5.5%.

For Lulu's Fashion Lounge, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. This represents a change of +214.3% from what the company reported a year ago. Lulu's Fashion Lounge currently has a Zacks Rank of #3 (Hold).


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