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Freshpet (FRPT) Soars 6.6%: Is Further Upside Left in the Stock?

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Freshpet (FRPT - Free Report) shares ended the last trading session 6.6% higher at $58.27. 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 19.6% loss over the past four weeks.

Freshpet has been benefiting from its focus on the Fresh Future plan. The company’s marketing, innovation, and distribution capacities also bode well. Apart from this, a robust start-up of the company’s Ennis Kitchen has been driving performance. Freshpet recently reported fourth-quarter 2022 results, where it projected net sales to grow 26% in 2023.

This seller of refrigerated fresh pet food is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $169.52 million, up 28.3% 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 Freshpet, the consensus EPS estimate for the quarter has been revised 36.9% 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 FRPT 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 >>>>

Freshpet is part of the Zacks Food - Miscellaneous industry. Post Holdings (POST - Free Report) , another stock in the same industry, closed the last trading session 0.3% higher at $86.75. POST has returned -3.9% in the past month.

Post Holdings' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.68. Compared to the company's year-ago EPS, this represents a change of +183.3%. Post Holdings currently boasts a Zacks Rank of #1 (Strong Buy).

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