Lifeway Foods (LWAY) shares soared 23.6% in the last trading session to close at $26.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.2% gain over the past four weeks.
Lifeway’s shares soared after Danone proposed to acquire the remaining ownership stake it does not already own. Danone North America PBC sent a letter proposing to purchase the outstanding Lifeway shares at $25 per share in cash. At present, Danone holds a 23.4% stake in Lifeway.
This dairy and cheese company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +17.4%. Revenues are expected to be $51.5 million, up 25.9% 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 Lifeway, 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 LWAY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lifeway is part of the Zacks Food - Dairy Products industry. Oatly Group AB Sponsored ADR (OTLY), another stock in the same industry, closed the last trading session 2.6% higher at $0.94. OTLY has returned -1.3% in the past month.
For Oatly Group
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Oatly Group AB Sponsored ADR (OTLY) : Free Stock Analysis Report
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