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Helen of Troy (HELE) Soars 5.4%: Is Further Upside Left in the Stock?

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Helen of Troy (HELE - Free Report) shares rallied 5.4% in the last trading session to close at $102.54. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.1% gain over the past four weeks.

Helen of Troy has been benefiting from strength in its Leadership Brands. It is also focused on developing a global restructuring plan Project Pegasus, aimed at expanding operating margins via initiatives designed to improve efficiency and reduce costs. Helen of Troy is making major investments in key areas like consumer-centric innovation, digital marketing, enhanced production, distribution capacity and direct-to-consumer channels.

This personal and household products company is expected to post quarterly earnings of $2.65 per share in its upcoming report, which represents a year-over-year change of -28.8%. Revenues are expected to be $527.71 million, down 15.6% 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 Helen of Troy, 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 HELE 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 >>>>

Helen of Troy is part of the Zacks Cosmetics industry. Nu Skin Enterprises (NUS - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $41.48. NUS has returned 7.1% in the past month.

For Nu Skin, the consensus EPS estimate for the upcoming report has changed -2.5% over the past month to $0.53. This represents a change of -52.3% from what the company reported a year ago. Nu Skin currently has a Zacks Rank of #5 (Strong Sell).

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