Strength Seen in Direct Digital Holdings, Inc. (DRCT): Can Its 5.6% Jump Turn into More Strength?
Direct Digital Holdings, Inc. (DRCT) shares ended the last trading session 5.6% higher at $5.83. 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 95.1% gain over the past four weeks.
The stock is currently benefiting from the company’s continuous efforts to expand both buy-side and sell-side advertising to improve top-line as well as operating performance.
This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $23.93 million, up 85.5% 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 Direct Digital Holdings, Inc., 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 DRCT 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 >>>>
Direct Digital Holdings, Inc. is a member of the Zacks Advertising and Marketing industry. One other stock in the same industry, Integral Ad Science (IAS), finished the last trading session 0.7% lower at $10.96. IAS has returned 13.7% over the past month.
Integral Ad Science's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. Compared to the company's year-ago EPS, this represents no change. Integral Ad Science currently boasts a Zacks Rank of #2 (Buy).
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