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OneConnect Financial Technology Co., Ltd. Sponsored ADR (OCFT) Surges 6.7%: Is This an Indication of Further Gains?

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OneConnect Financial Technology Co., Ltd. Sponsored ADR (OCFT - Free Report) shares rallied 6.7% in the last trading session to close at $16.43. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.5% gain over the past four weeks.

The stock is benefiting from the company’s healthy top-line growth, driven by strength in the cloud services platform. The bottom line is benefiting from product management strength and continuous cost difference.

Price and Consensus

Price Consensus Chart for OCFT

This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -145.2%. Revenues are expected to be $165.95 million, up 51.9% 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 OneConnect Financial Technology Co., Ltd. Sponsored ADR, the consensus EPS estimate for the quarter has been revised 10% 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 OCFT 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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