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Papa John's (PZZA) Surges 7.3%: Is This an Indication of Further Gains?

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Papa John's (PZZA - Free Report) shares ended the last trading session 7.3% higher at $100.89. 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 0.5% gain over the past four weeks.

Shares of Papa John's jumped after the company posted first quarter fiscal 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Notably, positive investor sentiments were witnessed as the company reported sixth straight quarter of solid comp sales and seventh straight quarter of positive global sales growth. Going forward, the company expects the momentum to continue as it continues to evolve its culinary offerings, technological updates and delivery capabilities.

Price and Consensus

Price Consensus Chart for PZZA

This pizza chain is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +273.3%. Revenues are expected to be $475.57 million, up 16% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Papa John's, the consensus EPS estimate for the quarter has been revised 3.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PZZA 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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