Onestream OS shares rallied 28.4% in the last trading session to close at $23.61. 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 2.2% loss over the past four weeks.
Onestream shares are benefiting from the announcement of being acquired by Hg, a leading investor in software, services, and data businesses. The all-cash transaction values OneStream at approximately $6.4 billion in equity value.
This artificial-intelligence developer is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -28.6%. Revenues are expected to be $157.16 million, up 18.6% 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 Onestream, 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 OS 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 >>>>
Onestream belongs to the Zacks Internet - Software industry. Another stock from the same industry, Elastic ESTC, closed the last trading session 1.8% higher at $75.61. Over the past month, ESTC has returned -1.6%.
Elastic's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.64. Compared to the company's year-ago EPS, this represents a change of +1.6%. Elastic currently boasts 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.
