Natura &Co Holding S.A. ADR (NTCO) Soars 11.1%: Is Further Upside Left in the Stock?
Natura &Co Holding S.A. ADR (NTCO) shares rallied 11.1% in the last trading session to close at $5.42. 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.
Shares of Natura &Co rallied following news that it is considering an initial public offering or spinning off the luxury beauty and wellness brand, Aesop. The move is in sync with the company’s goal to give its brand and business segments greater flexibility to unlock further value.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -155.6%. Revenues are expected to be $1.87 billion, up 2.4% 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 Natura &Co Holding S.A. ADR, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NTCO 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 >>>>
Natura &Co Holding S.A. ADR is part of the Zacks Cosmetics industry. Olaplex Holdings, Inc. (OLPX), another stock in the same industry, closed the last trading session 2% higher at $9.79. OLPX has returned -18.7% in the past month.
Olaplex Holdings, Inc.'s consensus EPS estimate for the upcoming report has changed -1% over the past month to $0.13. Compared to the company's year-ago EPS, this represents a change of +18.2%. Olaplex Holdings, Inc. currently boasts a Zacks Rank of #4 (Sell).
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