Flexsteel Industries (FLXS) shares rallied 6% in the last trading session to close at $72.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.9% gain over the past four weeks.
Improving investor sentiment, supported by easing geopolitical concerns and lower Treasury yields, may have contributed to the stock's gains.
This furniture maker is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of -17.9%. Revenues are expected to be $114.03 million, down 0.5% 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 Flexsteel, 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 FLXS 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 >>>>
Flexsteel is part of the Zacks Furniture industry. Bassett Furniture (BSET), another stock in the same industry, closed the last trading session 3% higher at $17.28. BSET has returned 13.2% in the past month.
For Bassett, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.2. This represents a change of -9.1% from what the company reported a year ago. Bassett currently has a Zacks Rank of #3 (Hold).
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Flexsteel Industries, Inc. (FLXS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).