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Natura &Co Holding S.A. ADR (NTCO) Surges 8.5%: Is This an Indication of Further Gains?

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Natura &Co Holding S.A. ADR shares rallied 8.5% in the last trading session to close at $7.19. 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 24.2% gain over the past four weeks.

Natura &Co has been benefiting from the strength of its brands, especially Natura, which witnessed robust momentum in the first quarter of 2023. Natura brand’s performance was driven by improved price and mix, along with growth in consultant productivity. The company’s focus on portfolio refinement and simplifying its overall structure has also been working well. The company delivered sales growth and improved profit margins in first-quarter 2023.

This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +90.5%. Revenues are expected to be $1.64 billion, down 7.4% 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 Natura &Co Holding S.A. ADR, 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 NTCO 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 >>>>

Natura &Co Holding S.A. ADR belongs to the Zacks Cosmetics industry. Another stock from the same industry, e.l.f. Beauty (ELF - Free Report) , closed the last trading session 4% higher at $111.47. Over the past month, ELF has returned 26.1%.

e.l.f. Beauty's consensus EPS estimate for the upcoming report has changed +21.2% over the past month to $0.58. Compared to the company's year-ago EPS, this represents a change of +48.7%. e.l.f. Beauty currently boasts a Zacks Rank of #3 (Hold).

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