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Betterware de Mexico SAPI de C (BWMX) Soars 11.4%: Is Further Upside Left in the Stock?

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Betterware de Mexico SAPI de C (BWMX - Free Report) shares soared 11.4% in the last trading session to close at $15.83. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.9% loss over the past four weeks.

BWMX leverages its Jafra brand and geographic diversification to drive growth. By combining a high-margin direct-to-consumer sales model with digital modernizations, such as its Shopify+ integration, the company is effectively offsetting domestic consumption headwinds. Per reports, Freedom Capital Markets has initiated coverage on the stock with a Buy rating.

This company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -6.9%. Revenues are expected to be $209.04 million, up 11.1% 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 Betterware de Mexico SAPI de C, 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 BWMX 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 >>>>

Betterware de Mexico SAPI de C is part of the Zacks Consumer Products - Discretionary industry. The RealReal (REAL - Free Report) , another stock in the same industry, closed the last trading session 0.1% higher at $15.8. REAL has returned 11.1% in the past month.

The RealReal's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.04. Compared to the company's year-ago EPS, this represents a change of +106.5%. The RealReal currently boasts a Zacks Rank of #3 (Hold).


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