Westrock Coffee Company (WEST) Moves 10.8% Higher: Will This Strength Last?

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Westrock Coffee Company (WEST) shares ended the last trading session 10.8% higher at $6.36. 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 18.5% loss over the past four weeks.

Westrock’s stock rally is an extension of its innovative beverage solutions that have impressed investors. The company provides a comprehensive range of services, from coffee bean sourcing to final product distribution, demonstrating a strong commitment to quality and delivering a complete end-to-end solution for its customers. Its newly built facility in Conway, Arkansas, is the largest roast-to-ready-to-drink manufacturing facility in North America. This facility places Westrock at the forefront of coffee and Ready-To-Drink beverage innovation and production. This state-of-the-art facility allows Westrock and its customers to tap into the growing demand for cold coffee, offering significant growth potential. With its advanced capabilities and highly automated processes, the Conway facility also helps customers reduce costs.

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -66.7%. Revenues are expected to be $256.23 million, up 16.7% 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 Westrock Coffee Company, the consensus EPS estimate for the quarter has been revised 16.7% 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 WEST 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 >>>>

Westrock Coffee Company belongs to the Zacks Beverages - Soft drinks industry. Another stock from the same industry, Embotelladora Andina S.A. (AKO.B), closed the last trading session 0.2% lower at $19.14. Over the past month, AKO.B has returned 5.2%.

Embotelladora Andina's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. Compared to the company's year-ago EPS, this represents a change of -20.8%. Embotelladora Andina currently boasts a Zacks Rank of #3 (Hold).

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