OneSpaWorld (OSW) shares soared 17.6% in the last trading session to close at $17.64. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.5% loss over the past four weeks.
Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, OneSpaWorld shares soared, reflecting renewed investor optimism.
This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +10.5%. Revenues are expected to be $219.23 million, up 3.8% 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 OneSpaWorld, the consensus EPS estimate for the quarter has been revised 4.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on OSW 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 >>>>
OneSpaWorld belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Xponential Fitness (XPOF), closed the last trading session 8.4% higher at $7.75. Over the past month, XPOF has returned -37.9%.
For Xponential Fitness , the consensus EPS estimate for the upcoming report has changed -56.9% over the past month to $0.15. This represents a change of -6.3% from what the company reported a year ago. Xponential Fitness currently has a Zacks Rank of #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).
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