Strength Seen in Freshworks Inc. (FRSH): Can Its 6.1% Jump Turn into More Strength?
Freshworks Inc. (FRSH) shares ended the last trading session 6.1% higher at $23.54. 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 22.1% gain over the past four weeks.
Freshworks extended its rally, driven by strengthening generative AI capabilities. Moreover, its increasing investments in advanced AI capabilities for customer service users are contributing well. Also, rising demand for Freshworks’ IT products is a plus.
This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +400%. Revenues are expected to be $158.11 million, up 18.7% 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 Freshworks 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 FRSH 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 >>>>
Freshworks Inc. is part of the Zacks Internet - Software industry. Paycom Software (PAYC), another stock in the same industry, closed the last trading session 2.8% higher at $203.71. PAYC has returned 11.9% in the past month.
Paycom's consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $1.78. Compared to the company's year-ago EPS, this represents a change of +2.9%. Paycom currently boasts a Zacks Rank of #3 (Hold).
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Freshworks Inc. (FRSH) : Free Stock Analysis Report
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