NV5 (NVEE) Soars 7.6%: Is Further Upside Left in the Stock?
NV5 Global (NVEE) shares ended the trading session on Tuesday 7.6% higher at $111.77. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.4% gain over the past four weeks.
The stock seems to have soared on sale rumors. Reuters has reported that NV5 Global is in early stages of a sale process.
This engineering services provider is expected to post quarterly earnings of $1.31 per share in its upcoming report, which represents a year-over-year change of -12.1%. Revenues are expected to be $220 million, up 8.5% 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 NV5, 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 NVEE 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 >>>>
NV5 is a member of the Zacks Technology Services industry. One other stock in the same industry, Bakkt Holdings, Inc. (BKKT), finished the last trading session 2.8% lower at $1.38. BKKT has returned -4.1% over the past month.
For Bakkt Holdings, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. This represents no change from what the company reported a year ago. Bakkt Holdings, Inc. currently has a Zacks Rank of #2 (Buy).
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