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Leslie's, Inc. (LESL) Surges 5.3%: Is This an Indication of Further Gains?

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Leslie's, Inc. (LESL - Free Report) shares soared 5.3% in the last trading session to close at $15.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.6% loss over the past four weeks.

Leslie’s has been benefiting from recurring demand in the after-market pool industry, as well as the company’s focus on its strategic growth efforts. Notably, the company raised its guidance for fiscal 2022 when it reported second-quarter results.

This company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +17.2%. Revenues are expected to be $701.76 million, up 17.6% 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 Leslie's, Inc., the consensus EPS estimate for the quarter has been revised 5.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LESL 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 >>>>

Leslie's, Inc. is part of the Zacks Consumer Products - Staples industry. Village Farms (VFF - Free Report) , another stock in the same industry, closed the last trading session 0.7% lower at $2.74. VFF has returned -10.4% in the past month.

For Village Farms, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. This represents a change of -16.7% from what the company reported a year ago. Village Farms currently has a Zacks Rank of #3 (Hold).


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