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Potbelly (PBPB) Soars 10.3%: Is Further Upside Left in the Stock?

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Potbelly Corporation (PBPB - Free Report) shares rallied 10.3% in the last trading session to close at $8.17. 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 8.4% loss over the past four weeks.

Potbelly scored a strong price increase, driven by investor’s optimism surrounding the company’s improved operations driven by an experienced management team, pipeline of franchise development deals, strong brand value, strategic marketing efforts, and continued execution of five-pillar strategy.

This sandwich restaurant operator is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $122.2 million, up 3.9% 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 Potbelly, 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 PBPB 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 >>>>

Potbelly is a member of the Zacks Retail - Restaurants industry. One other stock in the same industry, Portillo's Inc. (PTLO - Free Report) , finished the last trading session 4.7% higher at $14.85. PTLO has returned -13.1% over the past month.

Portillo's Inc.'s consensus EPS estimate for the upcoming report has changed +3.7% over the past month to $0.08. Compared to the company's year-ago EPS, this represents a change of +100%. Portillo's Inc. currently boasts a Zacks Rank of #3 (Hold).


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