GitLab Inc. GTLB shares rallied 12.8% in the last trading session to close at $37.4. 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 11.6% loss over the past four weeks.
GitLab benefits from strong enterprise demand for its AI-native DevSecOps platform, driven by the growing need for secure, efficient, and scalable software development solutions
This company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -30.3%. Revenues are expected to be $251.41 million, up 18.9% 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 Gitlab, 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 GTLB 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 >>>>
Gitlab is a member of the Zacks Internet - Software industry. One other stock in the same industry, Affirm Holdings AFRM, finished the last trading session 1.5% higher at $72.84. AFRM has returned -5.6% over the past month.
For Affirm Holdings, the consensus EPS estimate for the upcoming report has changed -8.7% over the past month to $0.28. This represents a change of +21.7% from what the company reported a year ago. Affirm Holdings currently has a Zacks Rank of #3 (Hold).
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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.
