Agilysys AGYS shares ended the last trading session 5.2% higher at $102.58. 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 18% gain over the past four weeks.
AGYS shares are benefiting from accelerating subscription revenue growth, record recurring revenue levels and a reaffirmed Buy rating from William Blair amid broader tech sector tailwinds.
This software provider for the lodging and leisure sectors is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +21.2%. Revenues are expected to be $85.85 million, up 12% 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 10.3% 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 a member of the Zacks Computer - Integrated Systems industry. One other stock in the same industry, IonQ, Inc. IONQ, finished the last trading session 2.5% lower at $49.31. IONQ has returned -27.9% over the past month.
IonQ's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.29. Compared to the company's year-ago EPS, this represents a change of +58.6%. IonQ currently boasts a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
