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Strength Seen in Haverty Furniture (HVT): Can Its 7% Jump Turn into More Strength?

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Haverty Furniture Companies, Inc. (HVT - Free Report) shares soared 7% in the last trading session to close at $43.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.4% loss over the past four weeks.

A slew of positive economic data like solid first-quarter GDP as well as lower weekly jobless claims might have driven the stock. The huge infrastructure package and expanded stimulus are also driving the stock higher.

This residential furniture and accessories retailer is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of +226.9%. Revenues are expected to be $208.9 million, up 90% from the year-ago 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 Haverty Furniture, 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 HVT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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