Strength Seen in MINISO Group Holding Limited (MNSO): Can Its 5.8% Jump Turn into More Strength?

MINISO Group Holding Limited MNSO shares ended the last trading session 5.8% higher at $9.6. 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 0.1% gain over the past four weeks.

MINISO is benefiting from strong consumer demand in the Chinese mainland, reflected in GMV growth of 25%-30% and high-single-digit same-store sales growth, with momentum continuing during the National Day holidays. The company’s expanding proprietary IP portfolio, particularly YOYO, which generated more than RMB1 billion in GMV and expanded into 53 countries and regions, strengthens brand differentiation and global growth opportunities.

Additionally, improving momentum in the U.S. market, where GMV growth rebounded to more than 30% in September, supported by new product arrivals and positive same-store sales growth, underscores the effectiveness of its product innovation strategy and international expansion efforts.

This company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +11.4%. Revenues are expected to be $1.01 billion, up 24.5% 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 MINISO Group Holding Limited, 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 MNSO 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 >>>>

MINISO Group Holding Limited belongs to the Zacks Retail - Apparel and Shoes industry. Another stock from the same industry, Urban Outfitters URBN, closed the last trading session 1.5% higher at $82.18. Over the past month, URBN has returned 7.1%.

Urban Outfitters' consensus EPS estimate for the upcoming report has changed +0.9% over the past month to $1.54. Compared to the company's year-ago EPS, this represents a change of +20.3%. Urban Outfitters currently boasts a Zacks Rank of #2 (Buy).

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

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