Nayax (NYAX) Moves 6.5% Higher: Will This Strength Last?

Nayax (NYAX) shares soared 6.5% in the last trading session to close at $45.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% gain over the past four weeks.

The stock has recorded this price as the company benefits from its large and expanding market, fueled by the shift from cash to digital payments.

This financial technology company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +225%. Revenues are expected to be $97.8 million, up 25.2% 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 Nayax, 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 NYAX 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 >>>>

Nayax is part of the Zacks Financial Transaction Services industry. Visa (V), another stock in the same industry, closed the last trading session 0.8% higher at $355.48. V has returned -3.4% in the past month.

For Visa, the consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $2.84. This represents a change of +17.4% from what the company reported a year ago. Visa 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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