European Wax Center (EWCZ) Soars 11.98% on Q1 Earnings Beat

European Wax Center (EWCZ) shares surged 0.35% today, marking the third consecutive day of gains, with a cumulative increase of 11.98% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 1.94%.

The strategy of buying EWCZ shares after they reached a recent high and holding for one week resulted in significant losses. Over the past five years, the strategy yielded a return of -74.73%, with a benchmark return of 29.49% and an excess return of -104.22%. The Sharpe ratio was -0.41, indicating poor risk-adjusted returns, and the maximum drawdown was -92.73%, highlighting the strategy's high risk and substantial losses.

European Wax Center, Inc. recently reported its Q1 2025 financial results, which revealed stagnant revenue but exceeded profitability expectations. This performance is credited to the company's strategic reset, which includes a focus on strategic marketing and enhanced support for franchisees. The company's efforts to improve its financial health and operational efficiency have been well-received by investors, contributing to the recent surge in stock price.

In addition to its strong financial performance, European Wax Center has been added to the Zacks Rank #1 (Strong Buy) list as of June 3, 2025. This designation reflects positive investor sentiment and underscores the company's potential for future growth. The inclusion in the Zacks Rank list is a significant endorsement of the company's strategic initiatives and its ability to deliver value to shareholders.