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Arhaus, Inc. (ARHS) Surges 5.8%: Is This an Indication of Further Gains?

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Arhaus, Inc. (ARHS - Free Report) shares ended the last trading session 5.8% higher at $16.02. 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 23.9% gain over the past four weeks.

The momentum in Arhaus’ stock can indeed be attributed to the better-than-expected performance in the fourth quarter of fiscal 2023. The company's aggressive expansion strategy, characterized by the opening of eleven new Showrooms and completion of eight renovation projects last fiscal, has notably bolstered brand visibility and expanded its customer base nationwide. As Arhaus remains committed to strategic investments in new Showrooms, innovative product offerings, and customer-centric initiatives throughout 2024, investors are growing increasingly optimistic about the company's trajectory for growth and long-term profitability.

This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -92%. Revenues are expected to be $263.23 million, down 13.6% 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 Arhaus, Inc., the consensus EPS estimate for the quarter has been revised 84.3% 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 ARHS 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 >>>>

Arhaus, Inc. is a member of the Zacks Retail - Miscellaneous industry. One other stock in the same industry, MarineMax (HZO - Free Report) , finished the last trading session 0.9% lower at $30.76. HZO has returned 2.7% over the past month.

MarineMax's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.74. Compared to the company's year-ago EPS, this represents a change of -39.8%. MarineMax currently boasts a Zacks Rank of #5 (Strong Sell).


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