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Bull of the Day: Zumiez (ZUMZ)

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With the market just under all-time highs, it may feel like any stock you pick is a good idea. While that may be the case in the short run, over the long run, stocks with strong earnings will outperform. Stock prices tend to move with earnings so this makes perfect sense. But how can you uncover stocks with strong earnings trends? One of the easiest ways is to use the Zacks Rank. Stocks with strong earnings trends tend to have very good Zacks Ranks. Today’s Bull of the Day is one of these highly rated stocks.

Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) Zumiez (ZUMZ - Free Report) . Zumiez Inc., together with its subsidiaries, operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of August 31, 2019, the company operated 711 stores, including 607 stores in the United States, 51 stores in Canada, 43 stores in Europe, and 10 stores in Australia under the names of Zumiez, Blue Tomato, and Fast Times. It also operates zumiez.com, blue-tomato.com, and fasttimes.com.au e-commerce Websites. 

Zumiez is a Zacks Rank #1 (Strong Buy) in the Retail – Apparel and Shoes industry which ranks in the Top 15% of our Zacks Industry Rank. The reason for the favorable rank lies in the series of earnings revisions coming in to the upside recently. Over the last seven days, six analysts have increased their earnings estimates for the current year while five have upped their estimates for next year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current year from $2.15 to $2.44 while next year’s number has gone up from $2.24 to $2.49.

Zumiez Inc. Price and Consensus

Zumiez Inc. Price and Consensus

Zumiez Inc. price-consensus-chart | Zumiez Inc. Quote

The positive revisions have been helping the stock rally. After bottoming out under $19 in early June, the stock has rallied dramatically. Shares popped up over $35 following its most recent earnings report. For the last two days, the stock has been giving up ground, coming down to look for support.

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