Strength Seen in the Chiefs Warehouse (CHIEF): Can his 5.1% jump turn into more strength?

VSShares of Hefs’ Warehouse (CHEF) ended the last trading session up 5.1% at $34.64. The jump occurred on impressive volume with an above average number of stocks changing hands during the session. That compares to the stock’s 1.4% gain over the past four weeks.
Shares of Chefs’ Warehouse rose as the company raised its guidance for full-year 2022, based on current business trends and outlook for the rest of the year. Management now expects net sales of $2.325 billion to $2.425 billion; gross profit of $542.0 to $565.0 million and adjusted EBITDA in the range of $130.0 to $140.0 million. Strong customer demand and the company’s ability to deliver products efficiently boosted its performance.
This specialty food retailer is expected to post quarterly earnings of $0.23 per share in its next report, representing a year-over-year change of +475%. Revenue is expected to be $558.95 million, up 32.2% from the prior year quarter.
Earnings and revenue growth forecasts certainly give a good idea of ​​a stock’s potential strength, but empirical research shows that trends in earnings estimate revisions are highly correlated with short-term stock price movements.

For Chefs’ Warehouse, the consensus EPS estimate for the quarter remained unchanged for the past 30 days. And the price of a stock generally does not continue to rise in the absence of any trend in earnings estimate revisions. So be sure to keep an eye on CHEF to see if that recent jump can turn into more strength down the road.
The stock currently carries a Zacks rank of No. 2 (buy). You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Chefs’ Warehouse is part of the Zacks Food – Miscellaneous industry. Another stock in the same sector, Freshpet (FRPT), ended the last trading session down 1% at $52.93. FRPT returned -11.7% over the past month.
For Freshpet, the consensus EPS estimate for the next report remained unchanged over the past month at -$0.14. This represents a change of +17.7% from what the company said a year ago. Freshpet 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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