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iMedia Brands (IMBI) Soars 12%: Is Further Upside Left in the Stock?

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iMedia Brands (IMBI - Free Report) shares rallied 12% in the last trading session to close at $6.91. 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 4.2% loss over the past four weeks.

The upswing in iMedia's share price can be attributed to its impressive preliminary fourth-quarter 2021 results. The company expects to report loss of 23 cents per share. Net sales is expected to increase at least $65 million from the year-ago quarter to $190 million.

This home shopping company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $176.68 million, up 41.6% 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 iMedia Brands, 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 IMBI 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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