eGain (EGAN) Moves 7.9% Higher: Will This Strength Last?
eGain (EGAN) shares rallied 7.9% in the last trading session to close at $11.87. 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 1.8% gain over the past four weeks.
The upswing in share price came after the company announced that eGain Cloud has earned Certified status for information security by HITRUST.
HITRUST CSF Certified status demonstrates that eGain Cloud has met key regulations and industry-defined requirements and is appropriately managing risk. This achievement places eGain in an elite group of organizations worldwide that have earned this certification.
eGain is benefitting from from the robust adoption of SaaS and on-premise business-to-consumer (B2C) customer engagement solutions. The company’s solutions have been, in fact, adopted by notable enterprise customers that include Avon, Comcast, Fiserv and Vodafone.
This maker of customer engagement software is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -62.5%. Revenues are expected to be $19.81 million, up 4.1% 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 eGain, 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 EGAN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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