Victoria's Secret (VSCO) shares ended the last trading session 9.1% higher at $42.15. 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 8% gain over the past four weeks.

Shares of Victoria’s Secret jumped after the company posted better-than-expected guidance for the fourth-quarter 2022. For the fourth quarter, the company anticipates operating income in the range of $265-$275 million compared with the prior estimate of $245-$265 million. Diluted earnings per share in the fourth quarter is anticipated in the range of $2.25-$2.35 up from the previous estimate of $2.05-$2.25. Moreover, positive investor sentiments were witnessed on attributes of a new share repurchase program and a better than expected retail environment.

This retailer of lingerie, pajamas and beauty products is expected to post quarterly earnings of $2.21 per share in its upcoming report, which represents a year-over-year change of -18.2%. Revenues are expected to be $2 billion, down 8.2% 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 Victoria's Secret, the consensus EPS estimate for the quarter has been revised 4.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on VSCO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Victoria's Secret belongs to the Zacks Leisure and Recreation Products industry. Another stock from the same industry, Acushnet (GOLF), closed the last trading session 0.2% higher at $46.95. Over the past month, GOLF has returned 10.4%.

Acushnet's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. Compared to the company's year-ago EPS, this represents a change of +86.1%. Acushnet currently boasts a Zacks Rank of #3 (Hold).

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