CoreCard (CCRD) Moves 5.7% Higher: Will This Strength Last?

CoreCard Corporation (CCRD) shares ended the last trading session 5.7% higher at $27.3. 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 3.8% loss over the past four weeks.

The stock surged after Euronet Worldwide reported strong second-quarter results and emphasized the strategic significance of its CoreCard acquisition. Euronet’s upbeat outlook, coupled with assurances that the CoreCard deal will be accretive to earnings, strengthened investor confidence and fueled buying momentum in CoreCard shares.

This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of -3.3%. Revenues are expected to be $16.2 million, up 3.2% 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 CoreCard, 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 CCRD 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 >>>>

CoreCard is part of the Zacks Technology Services industry. JBT Marel (JBTM), another stock in the same industry, closed the last trading session 1.4% higher at $140.82. JBTM has returned 0.8% in the past month.

JBT's consensus EPS estimate for the upcoming report has changed +1.7% over the past month to $1.51. Compared to the company's year-ago EPS, this represents a change of +0.7%. JBT currently boasts a Zacks Rank of #3 (Hold).

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

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