Back to top

Image: Bigstock

Strength Seen in Vince Holding Corp. (VNCE): Can Its 6.3% Jump Turn into More Strength?

Read MoreHide Full Article

Vince Holding Corp. (VNCE - Free Report) shares rallied 6.3% in the last trading session to close at $7.75. 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 14% loss over the past four weeks.

Shares of Vince Holding have been getting a boost from the optimism surrounding business recovery. On its last earnings call, management stated that it was impressed with the pace of business revival, as it started to emerge from COVID-19. The company is benefiting from robust consumer demand for the Vince brand – which saw strength in retail and wholesale sell-through rates in the last reported quarter. Solid momentum in the Vince brand bodes well for the company’s global growth strategies.  Apart from this, long-term prospects of its Rebecca Taylor brand look encouraging.

This company is expected to post quarterly loss of $0.64 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $70.6 million, up 90.7% 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 Vince Holding Corp., 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 VNCE 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 >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vince Holding Corp. (VNCE) - free report >>

Published in