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Elastic (ESTC) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Elastic (ESTC) closed at $69.76, marking a +0.52% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.49%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.67%.

Prior to today's trading, shares of the software developer had gained 11.09% over the past month. This has outpaced the Business Services sector's gain of 0.56% and the S&P 500's gain of 3.03% in that time.

Wall Street will be looking for positivity from ESTC as it approaches its next earnings report date. In that report, analysts expect ESTC to post earnings of -$0.35 per share. This would mark a year-over-year decline of 118.75%. Meanwhile, our latest consensus estimate is calling for revenue of $107.08 million, up 51.16% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.23 per share and revenue of $416.59 million, which would represent changes of -10.81% and +53.35%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ESTC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ESTC is holding a Zacks Rank of #1 (Strong Buy) right now.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ESTC in the coming trading sessions, be sure to utilize Zacks.com.


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