Strength Seen in Edgewell Personal (EPC): Can Its 5.4% Jump Turn into More Strength?
Edgewell Personal Care (EPC) shares ended the last trading session 5.4% higher at $31.60. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.9% loss over the past four weeks.
Edgewell Personal Care’s shares are gaining on the company’s robust execution of its core strategies. Markedly, the company has been benefiting from strength in its Wet Ones, Men's Grooming and Women's Wet Shave categories, as well as solid e-commerce channel. Apart from this, focus on Project Fuel transformational plan, which is aimed at simplifying the cost structure has been working well for the company. Impressively, management on its first-quarter fiscal 2021 earnings call said that it anticipates total annual gross savings of $265-$275 million from Project Fuel by the end of the fiscal.
Price and Consensus
This consumer products maker is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -32.6%. Revenues are expected to be $538.25 million, up 2.9% 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 Edgewell Personal, the consensus EPS estimate for the quarter has been revised 21.5% 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 EPC 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 >>>>
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