Sweetgreen, Inc. (SG) shares soared 13.8% in the last trading session to close at $7.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.7% loss over the past four weeks.
Sweetgreen shares rose sharply on Friday after the company clarified that its supply chain was not linked to the Cyclospora outbreak traced to shredded iceberg lettuce served at certain Taco Bell locations. The update eased investor concerns that had weighed heavily on the stock in the preceding sessions, prompting a relief-driven rebound as the perceived food-safety risk diminished.
This company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +35%. Revenues are expected to be $193.39 million, up 4.2% 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 Sweetgreen, the consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SG 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 >>>>
Sweetgreen belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, First Watch Restaurant Group, Inc. (FWRG), closed the last trading session 2.2% higher at $12.45. Over the past month, FWRG has returned 3.1%.
First Watch Restaurant Group's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents a change of +100%. First Watch Restaurant Group currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).