Climb Global (CLMB) Soars 6.7%: Is Further Upside Left in the Stock?
Climb Global Solutions (CLMB) shares soared 6.7% in the last trading session to close at $37.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8% gain over the past four weeks.
The stock is benefiting from the company’s consistent organic growth from new and existing vendors, and contribution from the Spinnaker acquisition.
This computer software reseller is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $84.64 million, up 12.1% 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 Climb Global, 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 CLMB 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 >>>>
Climb Global belongs to the Zacks Technology Services industry. Another stock from the same industry, First Advantage (FA), closed the last trading session 5.5% lower at $13.13. Over the past month, FA has returned 3%.
For First Advantage , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.30. This represents a change of -3.2% from what the company reported a year ago. First Advantage currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Climb Global Solutions, Inc. (CLMB) : Free Stock Analysis Report
First Advantage Corporation (FA) : Free Stock Analysis Report
To read this article on Zacks.com click here.