Stem, Inc. STEM shares ended the last trading session 8.8% higher at $6.71. 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 33.7% loss over the past four weeks.
STEM is benefiting from its focus on high-margin software and services, particularly PowerTrack and managed services, along with cost reductions and improved operational efficiency.
This company is expected to post quarterly loss of $3.00 per share in its upcoming report, which represents a year-over-year change of +31.8%. Revenues are expected to be $33.1 million, down 2.7% 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 Stem, 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 STEM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Stem is part of the Zacks Computers - IT Services industry. Cognizant CTSH, another stock in the same industry, closed the last trading session 0.8% higher at $77.59. CTSH has returned -4.3% in the past month.
Cognizant's consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $1.26. Compared to the company's year-ago EPS, this represents a change of +7.7%. Cognizant currently boasts a Zacks Rank of #2 (Buy).
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Stem, Inc. (STEM): Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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