Funko-A (FNKO) Stock Jumps 8.1%: Will It Continue to Soar?
Funko-A FNKO shares soared 8.1% in the last trading session to close at $26.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.2% gain over the past four weeks.
Notably, solid demand across product categories, growth in D2C e-commerce platform and increased traffic (on websites) have been boosting investors’ confidence.
This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -45%. Revenues are expected to be $299.76 million, up 27% 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 Funko-A, the consensus EPS estimate for the quarter has been revised marginally 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 FNKO 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 >>>>
Funko-A is part of the Zacks Consumer Products - Discretionary industry. Central Garden (CENTA), another stock in the same industry, closed the last trading session 1.4% higher at $41.51. CENTA has returned 5.5% in the past month.
Central Garden's consensus EPS estimate for the upcoming report has changed +4.2% over the past month to $1.26. Compared to the company's year-ago EPS, this represents a change of -8%. Central Garden currently boasts a Zacks Rank of #4 (Sell).
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