Chefs' Warehouse CHEF shares ended the last trading session 5.3% higher at $89.76. 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 5.9% gain over the past four weeks.
Chefs' Warehouse's stock rally is driven by optimism around its strong execution and market-share gains. The company is benefiting from margin expansion, ongoing investments in talent, technology and infrastructure, and solid demand trends, which continue to support its long-term growth outlook.
This distributor of specialty food products is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +23.1%. Revenues are expected to be $1.13 billion, up 9.6% 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 Chefs' Warehouse, 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 CHEF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Chefs' Warehouse is a member of the Zacks Food - Miscellaneous industry. One other stock in the same industry, Nomad Foods NOMD, finished the last trading session 0.6% higher at $10.37. NOMD has returned 13.4% over the past month.
For Nomad Foods, the consensus EPS estimate for the upcoming report has changed -6.3% over the past month to $0.37. This represents a change of -17.8% from what the company reported a year ago. Nomad Foods currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).