Strength Seen in Inter Parfums (IPAR): Can Its 3.5% Jump Turn into More Strength?
Inter Parfums (IPAR) shares soared 3.5% in the last trading session to close at $138.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.7% gain over the past four weeks.
Inter Parfums has been gaining on favorable demand, along with effective product launches and licensing deals. Courtesy of a healthy fragrance market, consumer demand and strength in brands, Inter Parfums recently posted robust second-quarter 2023 results, wherein the top and bottom lines increased year over year. The company expects both sales and earnings to grow 20% year over year in 2023.
This perfume maker is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of -1.5%. Revenues are expected to be $349.51 million, up 24.6% 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 Inter Parfums, the consensus EPS estimate for the quarter has been revised marginally 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 IPAR 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 >>>>
Inter Parfums is a member of the Zacks Cosmetics industry. One other stock in the same industry, Helen of Troy (HELE), finished the last trading session 1% lower at $117.17. HELE has returned -2.6% over the past month.
Helen of Troy's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.60. Compared to the company's year-ago EPS, this represents a change of -29.5%. Helen of Troy currently boasts a Zacks Rank of #2 (Buy).
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