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European Wax Center appears to be staging a major turnaround after years of stock price decline
Shares of EWCZ trade at a discount while stock price and earnings revision momentum accelerates
European Wax Center ((EWCZ - Free Report) ) is a leading personal care and waxing services brand with a broad network of franchised locations across the US. While the company has struggled since going public in 2021, shedding more than 70% of its value in the years following its IPO, recent performance suggests a major turnaround is underway.
After years of underperformance, EWCZ is now generating consistent profits, benefiting from improving margins and operational efficiency. More importantly, the stock has caught the attention of Wall Street, with both earnings estimates and share price momentum shifting sharply in its favor.
The stock has surged 63% over the past month alone, yet still trades at a bargain valuation, suggesting that this may just be the beginning of a longer-term recovery. With analyst sentiment improving and the business fundamentals strengthening, European Wax Center appears to be a high-upside opportunity.
Image Source: Zacks Investment Research
European Wax Center Shares Surges on Earnings Revisions
European Wax Center has seen a sharp turnaround in sentiment, driven by a wave of upward earnings estimate revisions. Over the past month, analysts have significantly raised their projections, giving the stock a Zacks Rank #1 (Strong Buy) rating. Current year earnings estimates have nearly doubled, up 97% in the last month, while forecasts for next year have jumped by 65%.
Earnings are expected to grow at an impressive 18.4% annually over the next three to five years, suggesting strong long-term potential. Despite this growth, the stock remains remarkably inexpensive, trading at just 8.6x forward earnings. With a PEG ratio of only 0.46, the valuation leaves ample room for multiple expansion, while also helping to cushion downside risk.
Operationally, EWCZ has been consistently outperforming expectations. The company has beaten earnings estimates in each of the last four quarters, delivering an average surprise of 187%. That trend looks set to continue, with the Zacks Earnings ESP (Expected Surprise Prediction) currently forecasting a 6.32% beat for the upcoming quarterly report. With both momentum and valuation on its side, European Wax Center is quickly shaping as a compelling opportunity.
Image Source: Zacks Investment Research
EWCZ Stock Price Momentum Accelerates
After a prolonged downtrend that lasted more than three years, European Wax Center appears to have finally found its footing. The stock has carved out a clear bottoming pattern and is now showing strong signs of a sustained reversal. Following a period of consolidation in the second half of May, shares broke out decisively in early June, confirming the trend change with a renewed surge in buying interest.
Momentum has only accelerated since then. On Monday, the stock jumped nearly 9%. This follows a broader rally of more than 60% over the past month, as both technical and fundamental signals have aligned.
While some investors may be hesitant to initiate a position after such a sharp rally, the stock’s deeply discounted valuation helps reduce the downside risk.
Image Source: TradingView
Should Investors Buy Shares in European Wax Center?
With a new CEO stepping in earlier this year, European Wax Center is undergoing a strategic refresh at just the right time. The leadership change adds another catalyst to a turnaround already supported by rising profits, bullish earnings revisions, and strong price momentum. For investors willing to look past the company’s rocky post-IPO history, EWCZ offers a compelling mix of growth potential and value.
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Bull of the Day: European Wax Center (EWCZ)
Key Takeaways
European Wax Center ((EWCZ - Free Report) ) is a leading personal care and waxing services brand with a broad network of franchised locations across the US. While the company has struggled since going public in 2021, shedding more than 70% of its value in the years following its IPO, recent performance suggests a major turnaround is underway.
After years of underperformance, EWCZ is now generating consistent profits, benefiting from improving margins and operational efficiency. More importantly, the stock has caught the attention of Wall Street, with both earnings estimates and share price momentum shifting sharply in its favor.
The stock has surged 63% over the past month alone, yet still trades at a bargain valuation, suggesting that this may just be the beginning of a longer-term recovery. With analyst sentiment improving and the business fundamentals strengthening, European Wax Center appears to be a high-upside opportunity.
Image Source: Zacks Investment Research
European Wax Center Shares Surges on Earnings Revisions
European Wax Center has seen a sharp turnaround in sentiment, driven by a wave of upward earnings estimate revisions. Over the past month, analysts have significantly raised their projections, giving the stock a Zacks Rank #1 (Strong Buy) rating. Current year earnings estimates have nearly doubled, up 97% in the last month, while forecasts for next year have jumped by 65%.
Earnings are expected to grow at an impressive 18.4% annually over the next three to five years, suggesting strong long-term potential. Despite this growth, the stock remains remarkably inexpensive, trading at just 8.6x forward earnings. With a PEG ratio of only 0.46, the valuation leaves ample room for multiple expansion, while also helping to cushion downside risk.
Operationally, EWCZ has been consistently outperforming expectations. The company has beaten earnings estimates in each of the last four quarters, delivering an average surprise of 187%. That trend looks set to continue, with the Zacks Earnings ESP (Expected Surprise Prediction) currently forecasting a 6.32% beat for the upcoming quarterly report. With both momentum and valuation on its side, European Wax Center is quickly shaping as a compelling opportunity.
Image Source: Zacks Investment Research
EWCZ Stock Price Momentum Accelerates
After a prolonged downtrend that lasted more than three years, European Wax Center appears to have finally found its footing. The stock has carved out a clear bottoming pattern and is now showing strong signs of a sustained reversal. Following a period of consolidation in the second half of May, shares broke out decisively in early June, confirming the trend change with a renewed surge in buying interest.
Momentum has only accelerated since then. On Monday, the stock jumped nearly 9%. This follows a broader rally of more than 60% over the past month, as both technical and fundamental signals have aligned.
While some investors may be hesitant to initiate a position after such a sharp rally, the stock’s deeply discounted valuation helps reduce the downside risk.
Image Source: TradingView
Should Investors Buy Shares in European Wax Center?
With a new CEO stepping in earlier this year, European Wax Center is undergoing a strategic refresh at just the right time. The leadership change adds another catalyst to a turnaround already supported by rising profits, bullish earnings revisions, and strong price momentum. For investors willing to look past the company’s rocky post-IPO history, EWCZ offers a compelling mix of growth potential and value.