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Surging Earnings Estimates Signal Upside for European Wax Center (EWCZ) Stock
ZACKSยท 2025-05-29 17:21
Core Viewpoint - European Wax Center, Inc. (EWCZ) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is projected at $0.17 per share, marking a 13.33% increase from the previous year, with a 48.94% rise in consensus estimates over the last 30 days [6]. - For the full year, the expected earnings are $0.61 per share, representing a year-over-year increase of 35.56%, with a notable 127.06% increase in consensus estimates due to positive revisions [7][8]. Zacks Rank and Performance - European Wax Center currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock outperformance [9]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][9]. Stock Performance - The stock has gained 68.6% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, suggesting it may be a good addition to investment portfolios [10].