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Medifast (MED) Soars 5.9%: Is Further Upside Left in the Stock?
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Medifast (MED - Free Report) shares ended the last trading session 5.9% higher at $36.61. 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 32.8% loss over the past four weeks.
Medifast’s shares have been gaining on optimism surrounding efforts to broaden its presence in the expansive health and wellness market. The company is foraying into popular medically supported weight management and sports nutrition segments. Medifast’s investments towards enhancing customer acquisition and experience is a driver.
This weight-loss company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -84.2%. Revenues are expected to be $166.01 million, down 52.4% 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 Medifast, the consensus EPS estimate for the quarter has been revised 66.3% 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 MED going forward to see if this recent jump can turn into more strength down the road.
Medifast is part of the Zacks Food - Miscellaneous industry. General Mills (GIS - Free Report) , another stock in the same industry, closed the last trading session 1.9% higher at $66.76. GIS has returned 3.6% in the past month.
General Mills' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.04. Compared to the company's year-ago EPS, this represents a change of +7.2%. General Mills currently boasts a Zacks Rank of #3 (Hold).
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Medifast (MED) Soars 5.9%: Is Further Upside Left in the Stock?
Medifast (MED - Free Report) shares ended the last trading session 5.9% higher at $36.61. 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 32.8% loss over the past four weeks.
Medifast’s shares have been gaining on optimism surrounding efforts to broaden its presence in the expansive health and wellness market. The company is foraying into popular medically supported weight management and sports nutrition segments. Medifast’s investments towards enhancing customer acquisition and experience is a driver.
This weight-loss company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -84.2%. Revenues are expected to be $166.01 million, down 52.4% 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 Medifast, the consensus EPS estimate for the quarter has been revised 66.3% 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 MED 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 >>>>
Medifast is part of the Zacks Food - Miscellaneous industry. General Mills (GIS - Free Report) , another stock in the same industry, closed the last trading session 1.9% higher at $66.76. GIS has returned 3.6% in the past month.
General Mills' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.04. Compared to the company's year-ago EPS, this represents a change of +7.2%. General Mills currently boasts a Zacks Rank of #3 (Hold).