Varonis Systems VRNS shares ended the last trading session 7.1% higher at $35.03. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.5% gain over the past four weeks.
The optimism surrounding the stock can be attributed to strong demand for Varonis’ data security and AI security solutions as enterprises accelerate AI adoption and seek to secure sensitive data across cloud and on-premise environments. Further, growing demand for securing AI agents, models and enterprise data, along with traction from recently acquired products such as Atlas, Interceptor and database activity monitoring solutions, is strengthening its growth outlook.
This data-management software company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -66.7%. Revenues are expected to be $176.97 million, up 16.3% 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 Varonis, the consensus EPS estimate for the quarter has been revised 1% 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 VRNS 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 >>>>
Varonis belongs to the Zacks Security industry. Another stock from the same industry, Check Point Software CHKP, closed the last trading session 3% higher at $123.89. Over the past month, CHKP has returned -10%.
For Check Point, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.45. This represents a change of +3.4% from what the company reported a year ago. Check Point 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.
