Sally Beauty (SBH – Free Report) ended the last trading session up 13.6% to $ 22.08. The jump came in at an impressive volume with an above-average number of stocks changing hands during the session. This compares to the stock’s 9.1% loss over the past four weeks.
Sally Beauty shares received a boost as analysts at Cowen and Oppenheimer improved their stock recommendation to Outperform, according to media reports. Analysts are optimistic about the company’s sales and profit outlook as beauty salons have reopened in the United States. In addition, an increased trend in do-it-yourself personal care, an increased demand for hair dyes and related products, as well as salon chair rental trends are auspicious. Apart from this, the company benefits from its sustained efforts to increase e-commerce business.
Notably, Sally Beauty’s global e-commerce sales jumped 56% year-over-year in the second quarter of fiscal 2021. Management in its earnings call pointed out that nearly 40% of its e-commerce sales for Sally in the US and Canada were made by stores during the quarter, underscoring the combined strength of the store and digital.
This beauty products seller is expected to post quarterly earnings of $ 0.60 per share in its next report, which represents a year-over-year change of + 645.5%. Revenue is expected to reach $ 968.15 million, up 37.3% from the prior year quarter.
While earnings and income growth expectations are important in assessing a stock’s potential strength, empirical research shows a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For Sally Beauty, the consensus EPS estimate for the quarter has been revised 1.2% up over the past 30 days to the current level. And a positive trend in revising earnings estimates usually translates into price appreciation. So be sure to keep an eye on SBH going forward to see if that recent leap can turn into more force on the road.
The stock currently carries a Zacks Rank 1 (strong buy). You can see the full list of Zacks Rank # 1 (strong buy) stocks today here >>>>