Xponential Fitness (XPOF) shares rallied 23.2% in the last trading session to close at $9.19. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 57% loss over the past four weeks.

Xponential Fitness stock rally reflects a rebound from a 38.45% drop on March 14, 2025, triggered by the announcement of a 2023 financial restatement. The recovery on March 17 may be attributed to investors perceiving the prior sell-off as an overreaction, leading to bargain hunting. Additionally, the company's fourth quarter 2024 performance, reflecting a 21% year-over-year increase in North America system-wide sales, may have bolstered investor confidence.

This franchisor of boutique fitness brands is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of +450%. Revenues are expected to be $80.61 million, down 10.6% 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 Xponential Fitness, the consensus EPS estimate for the quarter has been revised 15.5% 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 XPOF 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 >>>>

Xponential Fitness is part of the Zacks Leisure and Recreation Services industry. Target Hospitality (TH), another stock in the same industry, closed the last trading session 0.3% higher at $5.71. TH has returned -38.2% in the past month.

Target Hospitality's consensus EPS estimate for the upcoming report has changed -80.8% over the past month to $0.06. Compared to the company's year-ago EPS, this represents a change of -79.3%. Target Hospitality currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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