Interface (TILE) Moves 5.1% Higher: Will This Strength Last?

Interface TILE shares soared 5.1% in the last trading session to close at $25.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.9% loss over the past four weeks.

Interface's stock rally is an extension of its strong execution under the One Interface strategy, which is driving sales growth and margin expansion. Interface is benefiting from strong healthcare and education demand, improved product mix and ongoing automation-led efficiencies, supporting its growth outlook.

This carpet tile company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +32%. Revenues are expected to be $320 million, up 7.6% 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 Interface, the consensus EPS estimate for the quarter has been revised 26.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TILE 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 >>>>

Interface is a member of the Zacks Textile - Home Furnishing industry. One other stock in the same industry, Mohawk Industries MHK, finished the last trading session 5.8% higher at $101.83. MHK has returned -24.2% over the past month.

Mohawk Industries' consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $1.82. Compared to the company's year-ago EPS, this represents a change of +19.7%. Mohawk Industries currently boasts a Zacks Rank of #3 (Hold).

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