Oddity Tech (ODD) Soars 7.4%: Is Further Upside Left in the Stock?
Oddity Tech ODD shares ended the last trading session 7.4% higher at $35.40. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.3% loss over the past four weeks.
Oddity Tech is benefiting from strong revenue growth, fueled by a 6% increase in average order value in second quarter of 2024 and steady momentum from both IL MAKIAGE and SpoiledChild brands.
This online retailer of cosmetics and beauty products is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +4.8%. Revenues are expected to be $115.79 million, up 22.6% 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 Oddity Tech, 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 ODD 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 >>>>
Oddity Tech is a member of the Zacks Internet - Software industry. One other stock in the same industry, Alight, Inc. ALIT, finished the last trading session 1.3% higher at $7.16. ALIT has returned 4% over the past month.
Alight's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.10. Compared to the company's year-ago EPS, this represents a change of -28.6%. Alight currently boasts a Zacks Rank of #4 (Sell).
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