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Jakks (JAKK) Moves 7.1% Higher: Will This Strength Last?

·2 min read

JAKKS Pacific, Inc. JAKK shares rallied 7.1% in the last trading session to close at $10.35. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.3% loss over the past four weeks.

The company's double-digit sales growth during first-quarter 2020 was driven by robust performance across all Toys/Consumer Products segments. This has been boosting investors’ confidence for the quarter to be reported. Also, positive investor sentiments were witnessed as the company announced expectations of returning to normal patterns of shopping, gift-giving and celebrating Halloween, thereby generating a strong momentum for the company's performance for 2022 and beyond.

This toymaker is expected to post quarterly loss of $1.66 per share in its upcoming report, which represents a year-over-year change of +62.1%. Revenues are expected to be $91.9 million, up 16.7% 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 Jakks, the consensus EPS estimate for the quarter has been revised 6.3% 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 JAKK 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 >>>>


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