Back to top

Image: Bigstock

Strength Seen in Purple Innovation (PRPL): Can Its 6.7% Jump Turn into More Strength?

Read MoreHide Full Article

Purple Innovation (PRPL - Free Report) shares soared 6.7% in the last trading session to close at $6.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.6% gain over the past four weeks.

Shares of Performance Food are gaining on optimism surrounding its innovations. The company’s focus on manufacturing and supply chain efficiency initiatives are yielding well. Recently, PRPL came out with its preliminary fiscal 2022 estimated results, with net sales coming in at nearly $574 million. The company also highlighted that its fourth-quarter fiscal 2022 net sales improved sequentially despite the persistent macroeconomic challenges.

This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +91.4%. Revenues are expected to be $149.72 million, down 19.7% 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 Purple Innovation, 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 PRPL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Purple Innovation belongs to the Zacks Consumer Products - Staples industry. Another stock from the same industry, Village Farms (VFF - Free Report) , closed the last trading session 5.6% higher at $1.14. Over the past month, VFF has returned -20%.

For Village Farms, the consensus EPS estimate for the upcoming report has changed +4.6% over the past month to -$0.05. This represents a change of -266.7% from what the company reported a year ago. Village Farms currently has a Zacks Rank of #4 (Sell).

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

PURPLE INNOVATION, INC. (PRPL) - free report >>

Village Farms International, Inc. (VFF) - free report >>

Published in