ForgeRock (FORG) Stock Jumps 48.6%: Will It Continue to Soar?

ForgeRock (FORG) shares rallied 48.6% in the last trading session to close at $22.52. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.1% loss over the past four weeks.

The recent surge in ForgeRock’s share price comes right after the company announced news of its acquisition. Thoma Bravo will acquire ForgeRock for $23.25 per share in an all cash transaction, approximately valued at $2.3 billion.

This digital identity and access management services provider is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +57.1%. Revenues are expected to be $50.98 million, up 15.3% 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 ForgeRock, 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 FORG 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 >>>>

ForgeRock is part of the Zacks Internet - Software industry. 8x8 (EGHT), another stock in the same industry, closed the last trading session 5.6% higher at $3.19. EGHT has returned -37.3% in the past month.

For 8x8, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.03. This represents a change of +200% from what the company reported a year ago. 8x8 currently has a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.