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Kura Sushi (KRUS) Moves 7.2% Higher: Will This Strength Last?

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Kura Sushi (KRUS - Free Report) shares ended the last trading session 7.2% higher at $62.36. 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 1.2% gain over the past four weeks.

Kura Sushi’s rally is largely driven by optimism regarding the company’s pent-up consumer demand, traffic growth and new restaurant openings. Also, emphasis on the moderation of commodity costs via technological initiatives and the implementation of new Waitlist app and reward program platform, bodes well.

This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -5.3%. Revenues are expected to be $41.75 million, up 33.4% 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 Kura Sushi, 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 KRUS 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 >>>>

Kura Sushi belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, The ONE Group Hospitality, Inc. (STKS - Free Report) , closed the last trading session 4.4% higher at $9.08. Over the past month, STKS has returned 18.5%.

For The ONE Group Hospitality, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents a change of -25% from what the company reported a year ago. The ONE Group Hospitality, Inc. currently has a Zacks Rank of #4 (Sell).

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