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Barrett (BBSI) Moves 6.2% Higher: Will This Strength Last?

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Barrett Business Services (BBSI) shares rallied 6.2% in the last trading session to close at $75.87. 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 3.5% loss over the past four weeks.

The uptick can be attributed to the company's better-than-expected earnings performance and raised guidance.

This human resources management company is expected to post quarterly earnings of $1.87 per share in its upcoming report, which represents a year-over-year change of -16.5%. Revenues are expected to be $1.8 billion, up 12.2% 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 Barrett, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BBSI going forward to see if this recent jump can turn into more strength down the road.

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

Barrett belongs to the Zacks Outsourcing industry. Another stock from the same industry, Conduent (CNDT), closed the last trading session 1.1% higher at $4.46. Over the past month, CNDT has returned -10.4%.

For Conduent , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. This represents a change of -70% from what the company reported a year ago. Conduent currently has a Zacks Rank of #3 (Hold).


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