Vera Bradley (VRA) Soars 5.1%: Is Further Upside Left in the Stock?
Vera Bradley (VRA) shares soared 5.1% in the last trading session to close at $7.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.6% gain over the past four weeks.
Vera Bradley’s stock rally is an extension of its continued cost-management efforts and initiatives to drive long term profitable growth. Additionally, the company continues to progress on its goals to stabilize revenues, which was aided by the return of the Vera Bradley annual outlet sale. The company is poised to benefit from positive customer response to the company’s Vera Bradley and Pura Vida brands.
The company is making meaningful progress on Project Restoration focusing on four key pillars of the business for each brand: Consumer, Brand, Product and Channel. The execution of Project Restoration is expected to drive long-term profitable growth and deliver value to its shareholders.
This handbag and accessories company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -55%. Revenues are expected to be $123.09 million, down 0.8% 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 Vera Bradley, 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 VRA 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 >>>>
Vera Bradley is part of the Zacks Retail - Apparel and Shoes industry. Stitch Fix (SFIX), another stock in the same industry, closed the last trading session 14.9% higher at $3.40. SFIX has returned -10.8% in the past month.
Stitch Fix's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.23. Compared to the company's year-ago EPS, this represents a change of +50%. Stitch Fix currently boasts a Zacks Rank of #3 (Hold).
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Vera Bradley, Inc. (VRA) : Free Stock Analysis Report
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