J.Jill (JILL) Soars 11.6%: Is Further Upside Left in the Stock?

J.Jill JILL shares soared 11.6% in the last trading session to close at $31.70. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.7% gain over the past four weeks.

J.Jill has taken significant steps to fortify its financial position, culminating in the repayment of $60.4 million in debt and the initiation of a quarterly dividend program. These measures reflect the company's commitment to enhancing shareholder value through disciplined capital allocation and prudent financial management. With encouraging preliminary results for first-quarter fiscal 2024, including anticipated net sales of $160 million and Adjusted EBITDA exceeding expectations, J.Jill demonstrates resilience and strategic foresight in navigating market dynamics.

This retailer of women's clothes, shoes and accessories is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of +6.3%. Revenues are expected to be $154.1 million, up 3.1% 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 J.Jill, the consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on JILL 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 >>>>

J.Jill is part of the Zacks Retail - Apparel and Shoes industry. Tilly's (TLYS), another stock in the same industry, closed the last trading session 0.3% higher at $6.21. TLYS has returned 10.3% in the past month.

For Tilly's, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.47. This represents a change of -17.5% from what the company reported a year ago. Tilly's currently has a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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