Embotelladora Andina S.A. (AKO.B) shares rallied 5.6% in the last trading session to close at $30.1. 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 6.3% gain over the past four weeks.
Embotelladora Andina’s stock rally is an extension of stronger business fundamentals, supported by healthy revenue growth and an even faster rise in profitability. Improved operating leverage, higher earnings per share and robust comprehensive income, aided by favorable currency translation and effective hedging, reinforced investor confidence. The company also continued investing in production and logistics while generating positive earnings across all major operating markets, reflecting broad-based operational strength.
This company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of +64%. Revenues are expected to be $905.52 million, up 16.2% 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 Embotelladora Andina, 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 AKO.B 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 >>>>
Embotelladora Andina belongs to the Zacks Beverages – Soft drinks industry. Another stock from the same industry, Luckin Coffee Inc. Sponsored ADR (LKNCY), closed the last trading session 4% lower at $32.2. Over the past month, LKNCY has returned 10.7%.
Luckin Coffee’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.64. Compared to the company’s year-ago EPS, this represents no change. Luckin Coffee currently boasts a Zacks Rank of #3 (Hold).
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Embotelladora Andina S.A. (AKO.B) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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