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Strength Seen in Guess (GES): Can Its 6.3% Jump Turn into More Strength?

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Guess (GES - Free Report) shares ended the last trading session 6.3% higher at $23.19. 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 8.4% gain over the past four weeks.

Shares of Guess? have been gaining from consumers’ resumption of apparel shopping as they return to outdoor activities, thanks to mass inoculation. The company has been on track with its digital-first initiative and has been investing in brand building through social media platforms. The company is also focusing on brand-elevation, which includes enhancing product quality, visual merchandising and boosting customers’ shopping experience across stores and online.

This clothing company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -22.4%. Revenues are expected to be $615.06 million, up 8% 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 Guess, 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 GES 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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