Agilysys (AGYS) Soars 6.9%: Is Further Upside Left in the Stock?

Agilysys (AGYS) shares rallied 6.9% in the last trading session to close at $50.68. 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 6.6% loss over the past four weeks.

The recent surge in Agilysys share price reflects positive sentiments among investors after the company revealed new digital and mobile software approaches to overcome hospitality staff shortages. The combination of staff shortage with increasing staff demand increased the requirement for technology solutions to close the gap. As such Agilisys launch of recent hospitality solution will help boost its top line growth in the coming quarters.

This software provider for the lodging and leisure sectors is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $44.7 million, up 18% 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 Agilysys, 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 AGYS 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 >>>>

Agilysys is a member of the Zacks Computer - Integrated Systems industry. One other stock in the same industry, PAR Technology (PAR), finished the last trading session 3% lower at $29.16. PAR has returned -17% over the past month.

For PAR Technology , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.41. This represents a change of +66.7% from what the company reported a year ago. PAR Technology currently has a Zacks Rank of #3 (Hold).

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