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Surging Earnings Estimates Signal Good News for New Relic (NEWR)

Zacks Equity Research

New Relic, Inc. NEWR is a software analytics company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on NEWR’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that New Relic could be a solid choice for investors.

Current Quarter Estimates for NEWR

In the past 30 days, eight estimates have gone higher for New Relic while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 2 cents a share 30 days ago, to 5 cents today, a significant move.

Current Year Estimates for NEWR

Meanwhile, New Relic’s current year figures are also looking quite promising, with 10 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 49 cents per share 30 days ago to 59 cents per share today, an increase of 20.4%.

New Relic, Inc. Price and Consensus

New Relic, Inc. Price and Consensus | New Relic, Inc. Quote

Bottom Line

The stock has also started to move higher lately, adding 16.2% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #2 (Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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