Skillsoft Corp. (SKIL) shares soared 7% in the last trading session to close at $14.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.1% gain over the past four weeks.
The stock soared mainly due to rising earnings estimates, strong momentum metrics, and renewed investor confidence in the company’s turnaround strategy.
This company is expected to post quarterly earnings of $1.26 per share in its upcoming report, which represents a year-over-year change of +169.2%. Revenues are expected to be $131.56 million, down 4.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Skillsoft, the consensus EPS estimate for the quarter has been revised 131.4% 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 SKIL 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 >>>>
Skillsoft belongs to the Zacks Technology Services industry. Another stock from the same industry, Amplitude, Inc. (AMPL), closed the last trading session 5% lower at $9.6. Over the past month, AMPL has returned -11.8%.
Amplitude's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. Compared to the company's year-ago EPS, this represents a change of -66.7%. Amplitude currently boasts a Zacks Rank of #4 (Sell).
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Today, See These 5 Potential Home Runs >>Skillsoft Corp. (SKIL) : Free Stock Analysis Report
Amplitude, Inc. (AMPL) : Free Stock Analysis Report
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.
