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Fox Factory Holding (FOXF) Surges 4.8%: Is This an Indication of Further Gains?

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Fox Factory Holding (FOXF - Free Report) shares rallied 4.8% in the last trading session to close at $133.57. 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 22.1% loss over the past four weeks.

The stock jumped 4.77% yesterday after declining for seven straight sessions. While there is no company-specific news that triggered yesterday’s share price appreciation, the upsurge can be attributed to increasing demand for off-road vehicles amid rising recreational expenditure and the growing preference of the youth toward adventure. Sustained demand growth across the powersports industry and outdoor recreation combined with FOXF’s robust backlog and innovative product pipeline are set to boost the firm's run on the bourses, going forward. 

This vehicle suspension maker is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $333.96 million, up 27.3% 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 Fox Factory Holding, 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 FOXF 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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