SEMrush Holdings, Inc. SEMR shares soared 8.2% in the last trading session to close at $9.8. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.3% gain over the past four weeks.
SEMR is benefiting from strong adoption of its Enterprise SEO Solution, growing AI product demand, and increased average revenue per customer driven by cross-sell and up-sell strategies.
This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $108.9 million, up 19.7% 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 SEMrush, the consensus EPS estimate for the quarter has been revised 8.3% 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 SEMR 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 >>>>
SEMrush belongs to the Zacks Internet - Software industry. Another stock from the same industry, Reddit Inc. RDDT, closed the last trading session 0.3% lower at $145.8. Over the past month, RDDT has returned 9.1%.
Reddit Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. Compared to the company's year-ago EPS, this represents a change of +416.7%. Reddit Inc. currently boasts a Zacks Rank of #3 (Hold).
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SEMrush Holdings, Inc. (SEMR): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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