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Strength Seen in Workiva (WK): Can Its 7.2% Jump Turn into More Strength?

Workiva WK shares soared 7.2% in the last trading session to close at $92.79. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.9% gain over the past four weeks.

The upswing in share price can be attributed to Workiva's expanding portfolio and improved ESG rating by MSCI.

This maker of software for managing regulatory filings is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of -433.3%. Revenues are expected to be $139.22 million, up 15.3% 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 Workiva, 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 WK 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 >>>>

Workiva is part of the Zacks Internet - Software industry. Zoom Video Communications ZM, another stock in the same industry, closed the last trading session 4.2% higher at $78.11. ZM has returned 12.5% in the past month.

For Zoom Video , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.83. This represents a change of -35.7% from what the company reported a year ago. Zoom Video currently has a Zacks Rank of #3 (Hold).

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