To your point, Dorel (DII.B) has been on quite a run. Over the past three months, the company's sock is up by ~200%!!
From what I can tell, the rise is due in large part to the rise in cycling activity during the pandemic, and previous undervaluation. Despite the 200% gain, it is only up by 2.47% over the past year. This means that it fell in a big way, and was likely oversold and undervalued.
Combine this with momentum investing which has been front and centre during this pandemic, and you had the perfect environment for a big bounce.
Although momentum investing can be tempting, it can also be extremely volatile. We prefer to stick to fundamentals. In Dorel's case, first quarter (ending March 31) revenue dropped by 7.2% YOY. However, the company did state that bycycle sales surged in April. It is unclear if strong demand was sustained through end of June, but from what we've seen thus far, it would not surprise me.
Given this, the next quarter is likely to see a nice spike in revenue. Will the price continue to rise? I think this will all depend on company guidance moving forward. The surge in sales is likely already baked into the price. This means, that the company will have to either exceed expectations in a big way, or provide strong guidance for the trend to continue. I am not sure when they are scheduled to report (they don't have the greatest investor website) and I can't find the Q2 report date at any of the usual sources.
In terms of expectations, analysts expect negative revenue growth of 2.1% this year and 0.8% in 2021.
Mat