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Guess (GES) Surges 5.2%: Is This an Indication of Further Gains?

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Guess (GES - Free Report) shares rallied 5.2% in the last trading session to close at $17.24. 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 24.5% loss over the past four weeks.

Shares of Guess? have been getting a boost from the company’s solid digital business.  Guess? has been making progress in its customer-centric initiatives, which includes omnichannel capabilities as well as advanced data analytics and customer segmentation. In the third quarter of fiscal 2022, the company’s e-commerce business in North America and Europe rose 15% year on year. The company on its last earnings call stated that it expects to see continued improvement in its global e-commerce business through fourth-quarter fiscal 2022. Apart from this, Guess?’s focus on its six key strategies raise optimism. These include organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint.

This clothing company is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of -1.7%. Revenues are expected to be $809.23 million, up 24.8% 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 >>>>

Guess belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, G-III Apparel Group (GIII - Free Report) , closed the last trading session 4.9% higher at $23.91. Over the past month, GIII has returned -14.1%.

G-III Apparel's consensus EPS estimate for the upcoming report has changed +5.6% over the past month to $0.65. Compared to the company's year-ago EPS, this represents a change of +38.3%. G-III Apparel currently boasts a Zacks Rank of #3 (Hold).

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