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Turning Point Brands (TPB) Stock Jumps 5.5%: Will It Continue to Soar?

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Turning Point Brands (TPB - Free Report) shares ended the last trading session 5.5% higher at $34.01. 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 1% loss over the past four weeks.

Shares of Turning Point Brands have been getting a boost from its robust product portfolio. Strength in its Zig-Zag Products segment was an upside in the company’s fourth-quarter 2021 results. Segment sales jumped 13.6% in the quarter on the back of growth in U.S. rolling papers and Canadian businesses. The segment also benefited from a strong e-commerce performance. During the fourth quarter, Turning Point Brands’ Stoker’s Product segment also delivered a good show. Management expects sales of $193-$203 million from Zig-Zag Products segment and $127-$134 million from the Stoker’s Product segment in 2022. Notably, Turning Point Brands also announced a quarterly dividend hike of 9% in February 2022.

This company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $111 million, up 3.1% 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 Turning Point 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 TPB 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 >>>>

Turning Point Brands is a member of the Zacks Tobacco industry. One other stock in the same industry, Altria (MO - Free Report) , finished the last trading session 0.4% higher at $52.25. MO has returned -1.4% over the past month.

For Altria, the consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $1.10. This represents a change of +2.8% from what the company reported a year ago. Altria currently has a Zacks Rank of #3 (Hold).


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