Strength Seen in Zuora (ZUO): Can Its 6.1% Jump Turn into More Strength?
Zuora ZUO shares ended the last trading session 6.1% higher at $9.38. 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 5.4% loss over the past four weeks.
Zuora continues to benefit from an expanding clientele.In the fiscal third quarter, the number of customers with an annual contract value (ACV) equal to or greater than $250K was 453, up from the 420 reported in the year-ago quarter. Seven of the deals that closed in the reported quarter had ACV equal to or greater than $500K, one of which had ACV greater than $1 million.
This enterprise software company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +225%. Revenues are expected to be $110.8 million, up 7.5% 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 Zuora, 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 ZUO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zuora is a member of the Zacks Internet - Software industry. One other stock in the same industry, Everbridge EVBG, finished the last trading session 1% lower at $22.39. EVBG has returned -7.2% over the past month.
For Everbridge , the consensus EPS estimate for the upcoming report has changed -6.2% over the past month to $0.49. This represents a change of +25.6% from what the company reported a year ago. Everbridge currently has a Zacks Rank of #3 (Hold).
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