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Bear Of The Day: Grid Dynamics (GDYN)

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Grid Dynamics (GDYN - Free Report) is a Zacks Rank #5 (Strong Sell) and will report earnings on October 30, 2025 after the markets close. despite the company recently posted a solid beat and the stock has sold off as a result.  This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.

Description                                             

Grid Dynamics Holdings, Inc. engages in the provision of technology consulting, platform and product engineering, and advanced analytics services. It operates through the following geographical segments: United States, United Kingdom, Netherlands, and Other. The company was founded by Victoria Livschitz in 2006 and is headquartered in San Ramon, CA.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

In the case Grid Dynamics (GDYN - Free Report) I see the company has beat the Zacks Consensus Estimate in two of the last four quarters. The other two quarters saw the company meet earnings estimates. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.

The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.

The most recent quarter saw the company report EPS of $0.10 when the consensus was calling for $0.10. 

Earnings Estimates

The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower.  For Grid Dynamics (GDYN - Free Report) I see annual estimates for next year moving lower of late.

The current fiscal year consensus number has slid from $0.46 to $0.39 over the last 90 days. 

The next fiscal year has moved from $0.52 to $0.45 over the last 90 days.

Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).

It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions.  That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).


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