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Gildan (GIL) Moves 10.1% Higher: Will This Strength Last?

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Gildan Activewear (GIL - Free Report) shares soared 10.1% in the last trading session to close at $37.22. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.1% loss over the past four weeks.

The company has been benefiting from its Gildan's Sustainable Growth strategy, as well as its core pillars dedicated toward innovation, manufacturing capacity, and ESG. Despite a challenging landscape, the company drove market share gains across its core product categories over the last year. At its fourth-quarter earnings call, management stated that it expects a bright future for the company.

This apparel maker is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $671.4 million, down 4.5% 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 Gildan, the consensus EPS estimate for the quarter has been revised 16.4% 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 GIL 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 >>>>

Gildan is a member of the Zacks Textile - Apparel industry. One other stock in the same industry, Crocs (CROX - Free Report) , finished the last trading session 1.4% higher at $131.71. CROX has returned 9.2% over the past month.

Crocs' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.25. Compared to the company's year-ago EPS, this represents a change of -13.8%. Crocs currently boasts a Zacks Rank of #2 (Buy).


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