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Rocky Brands (RCKY) Moves 16.2% Higher: Will This Strength Last?

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Rocky Brands (RCKY - Free Report) shares soared 16.2% in the last trading session to close at $62.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.9% loss over the past four weeks.

Rocky Brands’ stock moved higher on better-than-expected first-quarter 2021 results. Robust demand for the Rocky, Georgia and Durango brands across its wholesale and direct-to-consumer channels aided the top and bottom line. Additionally, the company witnessed favorable year over year comparisons as its business remained impacted due to the COVID outbreak in the year-ago quarter. This resulted in substantial sales and earnings growth compared with the prior-year quarter. Moreover, it is poised to benefit from its multi-year initiatives including investments in product innovation, fulfillment, consumer engagement and inventory management, which has been boosting market share.

The company reported adjusted earnings of $1.19 per share that beat the Zacks Consensus Estimate of $0.59 and marked a substantial growth from 27 cents earned in the prior-year quarter. Net sales of $87.7 million surpassed the Zacks Consensus Estimate of $71 million and improved 57.3% year over year.
 

Price and Consensus

Price Consensus Chart for RCKY

This footwear company is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +17.3%. Revenues are expected to be $102.3 million, up 31.5% from the year-go 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 Rocky Brands, 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 RCKY 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 >>>>


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