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J.Jill (JILL) Moves 5.3% Higher: Will This Strength Last?

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J.Jill (JILL - Free Report) shares soared 5.3% in the last trading session to close at $16.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6% gain over the past four weeks.

J.Jill’s stock rally is an extension of its continued efforts to strengthen its operating model, with focus on delivering gross margin improvement through disciplined inventory management and full price selling. The premier omni-channel retailer has been benefiting from the steady growth in apparel sales due to the reopening of the economy. The women’s apparel brand is committed to offering customers great wear-now products. The company expects 2022 to be a year of further building on its established disciplines, particularly inventory and expense management. Going forward, it remains focused on driving profitable growth by acquiring new customers to its relevant brand and products.

This retailer of women's clothes, shoes and accessories is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +85%. Revenues are expected to be $144.8 million, up 12.2% 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 J.Jill, 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 JILL going forward to see if this recent jump can turn into more strength down the road.

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

J.Jill is part of the Zacks Retail - Apparel and Shoes industry. Designer Brands (DBI - Free Report) , another stock in the same industry, closed the last trading session 1.6% higher at $13.77. DBI has returned -6.2% in the past month.

Designer Brands' consensus EPS estimate for the upcoming report has changed +2.8% over the past month to $0.23. Compared to the company's year-ago EPS, this represents a change of +91.7%. Designer Brands currently boasts a Zacks Rank of #3 (Hold).

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