Send me real-time posts from this site at my email

Hostess Brands (TWNK) Soars 6.7%: Is Further Upside Left in the Stock?

Hostess Brands (TWNK) shares ended the last trading session 6.7% higher at $20.51. 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 6.1% loss over the past four weeks.

Shares of Hostess Brands rallied on news that the company will be added to S&P SmallCap 600 index. Per a report from S&P Dow Jones Indices, Hostess Brands will be added to the index effective Feb 1, 2022. Reportedly, Hostess Brands will replace Watts Water Technologies Inc. WTS in the S&P SmallCap 600.

This company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +9.5%. Revenues are expected to be $282.25 million, up 10.2% 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 Hostess Brands, 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 TWNK 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 >>>>


Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report
 
Hostess Brands (TWNK): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue