GitLab Inc. GTLB shares rallied 10.6% in the last trading session to close at $48.27. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.5% loss over the past four weeks.
GitLab is benefiting from strong enterprise demand for its AI-native DevSecOps platform, driven by the growing need for secure, efficient, and scalable software development solutions.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -13%. Revenues are expected to be $238.61 million, up 21.7% 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 Gitlab, 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 GTLB 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 >>>>
Gitlab belongs to the Zacks Internet - Software industry. Another stock from the same industry, MongoDB MDB, closed the last trading session 1.1% lower at $314.35. Over the past month, MDB has returned 0.8%.
For MongoDB, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.78. This represents a change of -32.8% from what the company reported a year ago. MongoDB currently has a Zacks Rank of #1 (Strong Buy).
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GitLab Inc. (GTLB): Free Stock Analysis Report MongoDB, Inc. (MDB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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