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Strength Seen in The RealReal (REAL): Can Its 8.8% Jump Turn into More Strength?

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The RealReal (REAL - Free Report) shares soared 8.8% in the last trading session to close at $6.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.6% gain over the past four weeks.

The RealReal’s strategic positioning at the intersection of luxury and value, combined with its domestic sourcing model, offers potential resilience. Continued execution on key growth pillars — profitable supply generation, operational efficiency, and enhanced service — supports long-term performance. 

This online luxury consignment site is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of -15.4%. Revenues are expected to be $160.17 million, up 10.5% 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 The RealReal, 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 REAL 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 >>>>

The RealReal is a member of the Zacks Consumer Products - Discretionary industry. One other stock in the same industry, Reynolds Consumer Products (REYN - Free Report) , finished the last trading session 2.6% higher at $22.11. REYN has returned 0.1% over the past month.

For Reynolds Consumer Products, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.37. This represents a change of -19.6% from what the company reported a year ago. Reynolds Consumer Products currently has a Zacks Rank of #3 (Hold).


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