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TransAct Technologies Incorporated (TACT) Surges 9.2%: Is This an Indication of Further Gains?

TransAct Technologies Incorporated TACT shares ended the last trading session 9.2% higher at $7.62. 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 14.6% gain over the past four weeks.

Optimism surrounding the TransAct stock could be primarily attributed to growing demand for its products and services amid the accelerated digital transformation and business automation across organizations.

This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +84.2%. Revenues are expected to be $15.9 million, up 43% 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 TransAct Technologies Incorporated, 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 TACT 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 >>>>

TransAct Technologies Incorporated is a member of the Zacks Computer - Peripheral Equipment industry. One other stock in the same industry, Mercury Systems MRCY, finished the last trading session 1.8% higher at $49.02. MRCY has returned 12.6% over the past month.

Mercury Systems' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.33. Compared to the company's year-ago EPS, this represents a change of -15.4%. Mercury Systems currently boasts a Zacks Rank of #3 (Hold).

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