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Strength Seen in Caleres Inc. (CAL): Can Its 9.4% Jump Turn into More Strength?

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Caleres Inc. (CAL - Free Report) shares ended the last trading session 9.4% higher at $11.38. 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 20.3% loss over the past four weeks.

Caleres’ stock rally is an extension of strong earnings momentum and disciplined execution. The footwear company impressed investors with solid revenue growth, margin expansion, and robust cash generation, driven by standout performances from its Famous Footwear and Brand Portfolio segments. Strategic inventory management and a sharp focus on profitability have boosted investor confidence, while consistent share repurchases underscore management’s commitment to value creation. With its diversified brand mix, healthy balance sheet, and improving consumer demand trends, Caleres appears well-positioned to sustain its upward stock trajectory.

This footwear wholesaler and retailer is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of -39%. Revenues are expected to be $770.44 million, up 4% 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 Caleres Inc., 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 CAL 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 >>>>

Caleres Inc. is part of the Zacks Shoes and Retail Apparel industry. Nike (NKE - Free Report) , another stock in the same industry, closed the last trading session 1.4% higher at $62.11. NKE has returned -11.2% in the past month.

For Nike, the consensus EPS estimate for the upcoming report has changed -5.3% over the past month to $0.37. This represents a change of -52.6% from what the company reported a year ago. Nike currently has a Zacks Rank of #3 (Hold).


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