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Caleres Inc. (CAL) Moves 6% Higher: Will This Strength Last?

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Caleres Inc. (CAL - Free Report) shares ended the last trading session 6% higher at $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 20% loss over the past four weeks.

Caleres stock rally is an extension of the continued progress toward its balance sheet initiatives, enhancing its cash position, reducing its debt levels and securing more advantageous terms on its asset-based credit facility. Extraordinary momentum in its Famous Footwear business is also a key driver. The stock has been benefiting from positive consumer demand trends and accelerated recovery in the footwear marketplace, which has been aiding its sales. Management anticipates strong performance at the Famous Footwear brand and gains in Brand Portfolio, leveraging of diversified brand model and the continued execution of ongoing strategic priorities to aid CAL’s performance.

This footwear wholesaler and retailer is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +2133.3%. Revenues are expected to be $677.95 million, up 18.7% 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 Caleres Inc., 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 CAL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Caleres Inc. is part of the Zacks Shoes and Retail Apparel industry. Steven Madden (SHOO - Free Report) , another stock in the same industry, closed the last trading session 1.9% higher at $38.98. SHOO has returned -6.3% in the past month.

Steven Madden's consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $0.46. Compared to the company's year-ago EPS, this represents a change of +39.4%. Steven Madden currently boasts a Zacks Rank of #3 (Hold).


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