Fastly (FSLY) Soars 13.3%: Is Further Upside Left in the Stock?

Fastly FSLY shares soared 13.3% in the last trading session to close at $8.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.2% gain over the past four weeks.

Fastly is benefitting from improved go-to-market execution, product expansion, and favorable pricing dynamics.

This cloud software developer is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $151.52 million, up 10.4% 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 Fastly, the consensus EPS estimate for the quarter has been revised marginally 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 FSLY 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 >>>>

Fastly is part of the Zacks Internet - Software industry. CS Disco LAW, another stock in the same industry, closed the last trading session 4.3% higher at $6.04. LAW has returned 18.2% in the past month.

For CS Disco, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. This represents no change from what the company reported a year ago. CS Disco currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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