Build-A-Bear (BBW) Moves 11.5% Higher: Will This Strength Last?

Zacks Equity Research
·2-min read

Build-A-Bear (BBW) shares rallied 11.5% in the last trading session to close at $9.01. 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 7.3% loss over the past four weeks.

Shares of Build-A-Bear Workshop have been gaining owing to the optimism surrounding its long-term growth prospects. The company remains committed toward advancing digital capabilities, accelerating consumer engagement, maintaining financial stability and introducing new products. Last week, the company announced the launch of a product collection based on the highly popular Nintendo Switch game, Animal Crossing: New Horizons.

Price and Consensus

Price Consensus Chart for BBW
Price Consensus Chart for BBW

This toy retailer is expected to post quarterly loss of $0.53 per share in its upcoming report, which represents a year-over-year change of +36.1%. Revenues are expected to be $42.95 million, down 7.9% 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 Build-A-Bear, the consensus EPS estimate for the quarter has been revised 960% 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 BBW 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 >>>>


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