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Yum China (YUMC) Soars 7.2%: Is Further Upside Left in the Stock?
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Yum China Holdings (YUMC - Free Report) shares rallied 7.2% in the last trading session to close at $38.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.3% gain over the past four weeks.
Shares of Yum China appreciated after China announced significant stimulus measures, its biggest since the pandemic.
This restaurant operator in China is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +13.6%. Revenues are expected to be $3.08 billion, up 5.7% 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 Yum China, the consensus EPS estimate for the quarter has been revised marginally 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 YUMC going forward to see if this recent jump can turn into more strength down the road.
Yum China belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Brinker International (EAT - Free Report) , closed the last trading session 0.9% lower at $77.16. Over the past month, EAT has returned 9.4%.
For Brinker International, the consensus EPS estimate for the upcoming report has changed +2.3% over the past month to $0.63. This represents a change of +125% from what the company reported a year ago. Brinker International currently has a Zacks Rank of #3 (Hold).
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Yum China (YUMC) Soars 7.2%: Is Further Upside Left in the Stock?
Yum China Holdings (YUMC - Free Report) shares rallied 7.2% in the last trading session to close at $38.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.3% gain over the past four weeks.
Shares of Yum China appreciated after China announced significant stimulus measures, its biggest since the pandemic.
This restaurant operator in China is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +13.6%. Revenues are expected to be $3.08 billion, up 5.7% 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 Yum China, the consensus EPS estimate for the quarter has been revised marginally 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 YUMC 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 >>>>
Yum China belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Brinker International (EAT - Free Report) , closed the last trading session 0.9% lower at $77.16. Over the past month, EAT has returned 9.4%.
For Brinker International, the consensus EPS estimate for the upcoming report has changed +2.3% over the past month to $0.63. This represents a change of +125% from what the company reported a year ago. Brinker International currently has a Zacks Rank of #3 (Hold).