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Strength Seen in Agilysys (AGYS): Can Its 8.7% Jump Turn into More Strength?

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Agilysys (AGYS) shares ended the last trading session 8.7% higher at $39.73. 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 11.5% loss over the past four weeks.

A strong performance in its recently released fourth quarter fiscal 2022 results have pushed the tech stock higher. The company surpassed Zacks’ top-line and bottom-line estimates. Notably, the company witnessed a growth in its subscription revenues, which is expected to continue in the near term. It also provided a strong guidance for full year fiscal 2023.

This software provider for the lodging and leisure sectors is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $45.7 million, up 18% 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 Agilysys, the consensus EPS estimate for the quarter has been revised 12.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AGYS 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 >>>>

Agilysys is part of the Zacks Computer - Integrated Systems industry. NCR (NCR), another stock in the same industry, closed the last trading session 3.2% higher at $31.01. NCR has returned -9.2% in the past month.

NCR's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.62. Compared to the company's year-ago EPS, this represents no change. NCR currently boasts a Zacks Rank of #3 (Hold).

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