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Strength Seen in Radware (RDWR): Can Its 10.0% Jump Turn into More Strength?

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Radware (RDWR - Free Report) shares soared 10% in the last trading session to close at $20.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.1% loss over the past four weeks.

The growing optimism over the stock can be attributable to the rising demand for consistent application security across multi-cloud environments, which is aiding revenue growth. The company is gaining traction from stellar software growth, backed by a solid uptick in public cloud and security offerings.

This network management software maker is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $63.6 million, down 7.9% 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 Radware, 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 RDWR 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 >>>>

Radware is part of the Zacks Internet - Software industry. Thryv Holdings, Inc. (THRY - Free Report) , another stock in the same industry, closed the last trading session 0.9% higher at $22. THRY has returned 1.4% in the past month.

For Thryv Holdings, Inc., the consensus EPS estimate for the upcoming report has changed +36.7% over the past month to $0.41. This represents a change of +64% from what the company reported a year ago. Thryv Holdings, Inc. currently has a Zacks Rank of #5 (Strong Sell).


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