Village Farms (VFF) shares ended the last trading session 6.4% higher at $5.80. 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 13.1% gain over the past four weeks.
Shares of Village Farms have been getting a boost from the company’s strength in Canadian cannabis operations. This in turn is backed by Pure Sunfarms' solid market share in the dried flower category and product innovations. Contributions from the buyout of Rose LifeScience in Quebec is also a driving factor for the company. Additionally, the company has been gaining on its production capacity expansions as well as efficient product strategy. Village Farms remains well positioned in 2022.
This greenhouse operator is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +85.7%. Revenues are expected to be $69.7 million, up 33% 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 Village Farms, the consensus EPS estimate for the quarter has been revised 125% 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 VFF 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 >>>>
Village Farms belongs to the Zacks Consumer Products - Staples industry. Another stock from the same industry, Purple Innovation (PRPL), closed the last trading session 1.2% lower at $6.85. Over the past month, PRPL has returned 23.8%.
Purple Innovation's consensus EPS estimate for the upcoming report has changed -824.1% over the past month to -$0.30. Compared to the company's year-ago EPS, this represents a change of -276.5%. Purple Innovation currently boasts a Zacks Rank of #5 (Strong Sell).
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