StepStone Group Inc. (STEP) shares rallied 8.8% in the last trading session to close at $65.39. 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 2.7% gain over the past four weeks.
STEP recorded a strong price rise following investor optimism, driven by Goldman Sachs’ rating upgrade to a Buy and an increased price target, according to a Benzinga report. Goldman Sachs highlighted the company’s growing private wealth business and solid institutional pipeline as major catalysts for growth. With a strong foothold in alternative investments and impressive fundraising momentum, StepStone is positioning itself as a long-term value creator in the asset management space.
This company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $235.99 million, up 13% 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 StepStone Group, 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 STEP 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 >>>>
StepStone Group belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, SoFi Technologies, Inc. (SOFI), closed the last trading session 3.6% higher at $28.11. Over the past month, SOFI has returned 20.5%.
For SoFi Technologies, the consensus EPS estimate for the upcoming report has changed +2.7% over the past month to $0.08. This represents a change of +60% from what the company reported a year ago. SoFi Technologies currently has a Zacks Rank of #2 (Buy).
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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.
