Rocky Brands (RCKY) Soars 11.2%: Is Further Upside Left in the Stock?
Rocky Brands RCKY shares soared 11.2% in the last trading session to close at $35.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.4% loss over the past four weeks.
Rocky Brands’ stock rally is the continuation of gains from robust demand for its portfolio of leading brands. The company’s ability to innovate quickly, given its small size of business also bode well. In a recent development, it completed its cost savings review which is likely to contribute to further growth. As part of its review, the company intends to shut down its Boston office acquired via the Honeywell buyout along with reducing 13% of non-manufacturing headcount related to the acquired brands. These actions are likely to generate savings of $3-$4 million on an annual basis.
This footwear company is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -30.3%. Revenues are expected to be $133.94 million, up 1.8% 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 Rocky Brands, 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 RCKY 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 >>>>
Rocky Brands is part of the Zacks Shoes and Retail Apparel industry. Caleres Inc. CAL, another stock in the same industry, closed the last trading session 1.7% higher at $26.56. CAL has returned 0.1% in the past month.
Caleres Inc.'s consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $1.32. Compared to the company's year-ago EPS, this represents a change of +10.9%. Caleres Inc. currently boasts a Zacks Rank of #1.
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