Yahoo Finance Envestnet (ENV) Soars 9.3%: Is Further Upside Left in the Stock?
Envestnet (ENV) shares ended the last trading session 9.3% higher at $61.80. 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 3.8% gain over the past four weeks.
The news that the company is looking into options, including selling to a private equity firm, is what's causing investors to be more optimistic.
This financial services firm is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of +17.4%. Revenues are expected to be $324.85 million, up 8.8% 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 Envestnet, 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 ENV 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 >>>>
Envestnet belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Fiserv (FI), closed the last trading session 1.2% lower at $146.40. Over the past month, FI has returned -2.6%.
Fiserv's consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $1.78. Compared to the company's year-ago EPS, this represents a change of +12.7%. Fiserv currently boasts a Zacks Rank of #3 (Hold).
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