Red Hat (RHT) Surges: Why It Still Has Room to Run?

Zacks

One company that should be on your radar is Red Hat, Inc (RHT). The stock of this application software industry has seen its Zacks Rank surge over the past four weeks, moving from Neutral territory to its current position as a Strong Buy.

A key reason for this move has been the positive trend in the earnings estimate revisions picture. For RHT’s full year estimate, we have seen 8 estimates go higher in the past 30 days. However, the stock underwent no downward estimate revision during the same time period.  This trend has helped the consensus estimate to trend higher, going from 96 cents a share a month ago to its current level at $1.01.

This positive shift in estimates has made some investors take notice and buy the stock. In fact, RHT has seen some pretty solid trading lately, as the company has moved higher by 22.0% in the past month.

If Tesla can keep up this great momentum on the earnings estimate front and continue to impress analysts, we could see more gains ahead for this company, suggesting that you might want to put RHT on your watch list for the future.

Other top-ranked stocks worth considering in this space include Bottomline Technologies (de), Inc. (EPAY),  Interactive Intelligence Group Inc. (ININ) with Zacks Rank # 1 (Strong Buy) and Progress Software Corp. (PRGS) with a Zacks Rank # 2.(Buy).

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