Workiva WK shares soared 5.9% in the last trading session to close at $49.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.6% loss over the past four weeks.
Workiva’s recent gains appear supported by strong fundamentals as the company delivered 20% revenue growth, 21% subscription revenue growth, expanding profitability, rising large enterprise deals, 112% net retention, increasing multi-solution adoption, AI-driven product innovation and raised full-year margin and free cash flow guidance, signaling durable long-term growth potential.
This maker of software for managing regulatory filings is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +236.8%. Revenues are expected to be $250.94 million, up 16.6% 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 Workiva, 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 WK 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 >>>>
Workiva is part of the Zacks Internet - Software industry. Workday WDAY, another stock in the same industry, closed the last trading session 9.2% higher at $124.21. WDAY has returned -12.5% in the past month.
Workday's consensus EPS estimate for the upcoming report has changed +0.6% over the past month to $2.62. Compared to the company's year-ago EPS, this represents a change of +18.6%. Workday 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.
