Strength Seen in Evolv Technologies (EVLV): Can Its 14.8% Jump Turn into More Strength?

Evolv Technologies Holdings, Inc. EVLV shares rallied 14.8% in the last trading session to close at $5.11. 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 12.1% gain over the past four weeks.

Evolv is benefiting from an expanding clientele. It recently inked a partnership with Dignity Health Sports Park (DHSP), home of the five-time MLS Cup Champions, the LA Galaxy. The new partnership officially kicked off at the LA Galaxy's home opener late last month, where Evolv Express was used to screen guests entering DHSP.

This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -16.7%. Revenues are expected to be $23.17 million, up 24.7% 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 Evolv Technologies, 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 EVLV 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 >>>>

Evolv Technologies is part of the Zacks Computers - IT Services industry. Infosys (INFY), another stock in the same industry, closed the last trading session 2% lower at $17.58. INFY has returned -9.6% in the past month.

Infosys' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. Compared to the company's year-ago EPS, this represents a change of -5.6%. Infosys currently boasts 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.

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