Nomad Foods (NOMD) shares ended the last trading session 5.3% higher at $11.12. 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 4.2% gain over the past four weeks.
Nomad Foods’ recent share gain appears to reflect improving execution and a better long-term growth setup. Optimism around pricing discipline, organizational changes, stronger leadership depth and efforts to sharpen its growth strategy has likely supported investor sentiment. Resilient demand for its brands and improving category trends also reinforce the view that Nomad Foods is better positioned to create long-term shareholder value.
This frozen foods company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -17.8%. Revenues are expected to be $832.9 million, down 1.7% 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 Nomad Foods, 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 NOMD 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 >>>>
Nomad Foods belongs to the Zacks Food - Miscellaneous industry. Another stock from the same industry, Celsius Holdings Inc. (CELH), closed the last trading session 5.8% higher at $29.85. Over the past month, CELH has returned -15.1%.
Celsius' consensus EPS estimate for the upcoming report has changed -1.9% over the past month to $0.42. Compared to the company's year-ago EPS, this represents a change of -10.6%. Celsius currently boasts a Zacks Rank of #3 (Hold).
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Nomad Foods Limited (NOMD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).