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Strength Seen in Anaplan (PLAN): Can Its 6% Jump Turn into More Strength?

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Anaplan (PLAN - Free Report) shares ended the last trading session 6% higher at $60.23. 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 29.6% loss over the past four weeks.

Anaplan extended its rally for the third straight day driven by ongoing digital transformation, optimism over growing billings, new customer additions and increasing number of large deals.

Price and Consensus

Price Consensus Chart for Anaplan

This software developer is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +10%. Revenues are expected to be $127.02 million, up 22.3% 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 Anaplan, the consensus EPS estimate for the quarter has been revised 5.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PLAN 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 >>>>

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