Blue Apron (APRN) Stock Jumps 12.1%: Will It Continue to Soar?

Blue Apron (APRN) shares ended the last trading session 12.1% higher at $5.01. 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 24.1% loss over the past four weeks.

Blue Apron’s shares have been gaining on the optimism surrounding its holistic customer acquisition approach. The company’s effective marketing initiatives have been a key driver. Blue Apron’s focus on its turnaround strategy — The Next Course — is noteworthy.

This meal-kit seller is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of +61.5%. Revenues are expected to be $133.66 million, up 21.9% 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 Blue Apron, 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 APRN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Blue Apron is a member of the Zacks Food - Miscellaneous industry. One other stock in the same industry, Darling Ingredients (DAR), finished the last trading session 0.2% lower at $66.42. DAR has returned -14.5% over the past month.

For Darling , the consensus EPS estimate for the upcoming report has changed +1.7% over the past month to $1.43. This represents a change of +62.5% from what the company reported a year ago. Darling currently has a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Blue Apron Holdings, Inc. (APRN) : Free Stock Analysis Report
Darling Ingredients Inc. (DAR) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research