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Upwork (UPWK) Stock Jumps 5.8%: Will It Continue to Soar?

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Upwork (UPWK - Free Report) shares rallied 5.8% in the last trading session to close at $60.70. 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 13.8% gain over the past four weeks.

The increase in share price can be attributed to momentum seen in freelancing adoption by enterprises, owing to the continuation of remote work set up amid the ongoing pandemic.

Upwork is adding newer capabilities to its platform to capitalize on the opportunity. The company’s latest recruiting solution — Talent Scout — provides access to pre-screened talent by Upwork recruiters for the business enterprises’ specific needs.

Prior to that, Upwork introduced Work Marketplace, a new industry category, to boost the potential of freelancing by offering freelancers and prospective employers to collaborate through several innovative approaches.

Upwork also has in place an extensive advertising and multichannel messaging campaign to increase the visibility and awareness about its platform.

This online freelance marketplace operator is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -22.2%. Revenues are expected to be $120.82 million, up 38% 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 Upwork, 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 UPWK 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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