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Strength Seen in J&J Snack Foods (JJSF): Can Its 4.8% Jump Turn into More Strength?

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J&J Snack Foods (JJSF - Free Report) shares ended the last trading session 4.8% higher at $132.38. 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 2.7% gain over the past four weeks.

J&J Snack Foods’ stock is gaining from the strong demand of its products amid the ongoing foodservice business recovery. Other factors working in the company’s favor are new customer wins and effective pricing actions. Apart from these, the company’s successful product launches and effective marketing initiatives bode well.

This drink and snack maker is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of -31.1%. Revenues are expected to be $351.35 million, up 8.3% 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 J&J Snack Foods, the consensus EPS estimate for the quarter has been revised 1.7% 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 JJSF 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 >>>>

J&J Snack Foods belongs to the Zacks Food - Miscellaneous industry. Another stock from the same industry, MGP (MGPI - Free Report) , closed the last trading session 1.8% higher at $93.14. Over the past month, MGPI has returned -2.4%.

For MGP, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.84. This represents a change of -33.9% from what the company reported a year ago. MGP currently has a Zacks Rank of #1 (Strong Buy).


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