Sally Beauty (SBH) Stock Jumps 6.0%: Will It Continue to Soar?

Sally Beauty SBH shares rallied 6% in the last trading session to close at $13.83. 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 3.7% gain over the past four weeks.

Sally Beauty's stock rally is driven by optimism surrounding its strategic growth initiatives and resilient demand trends. The company is benefiting from strong color-category performance, digital expansion, product innovation, margin-enhancing cost savings and solid cash flow generation, which continue to support its long-term growth outlook. 

This beauty products seller is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +3.9%. Revenues are expected to be $938 million, up 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 Sally Beauty, 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 SBH 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 >>>>

Sally Beauty is a member of the Zacks Retail - Miscellaneous industry. One other stock in the same industry, Tractor Supply TSCO, finished the last trading session 1.7% higher at $30.24. TSCO has returned -6.1% over the past month.

Tractor Supply's consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $0.85. Compared to the company's year-ago EPS, this represents a change of +4.9%. Tractor Supply currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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