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Strength Seen in Casper Sleep (CSPR): Can Its 16.2% Jump Turn into More Strength?

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Casper Sleep Inc. (CSPR - Free Report) shares rallied 16.2% in the last trading session to close at $11.84. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.8% gain over the past four weeks.

Positive investor sentiments were witnessed as the company has been benefiting from three core strategic priorities that include expansion of  product offering with the launch of  Casper Cooling Collection, increasing brand awareness with the introduction of the new ‘Love Your Tomorrow’ brand platform, and growing points of retail distribution.  Also the company's full Year 2021 financial outlook  reflects solid business trends.

This company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of +35.9%. Revenues are expected to be $150.75 million, up 36.8% 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 Casper Sleep, the consensus EPS estimate for the quarter has been revised 6.1% 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 CSPR 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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