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Endava PLC Sponsored ADR (DAVA) Surges 3.1%: Is This an Indication of Further Gains?

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Endava PLC Sponsored ADR (DAVA - Free Report) shares rallied 3.1% in the last trading session to close at $138.70. 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 1.1% loss over the past four weeks.

The upswing in Endava’s share price can be attributed to its growing expertise in fintech domain, ongoing digital transformation by enterprises, accretive acquisitions and improving economic environment.

Acquisitions like Pet Minuta, Five Minutes Studio and Levvel are expected to have driven top-line in the fourth quarter of fiscal 2021.

Price and Consensus

Price Consensus Chart for DAVA


This company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +72.4%. Revenues are expected to be $185.69 million, up 65.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Endava PLC Sponsored ADR, 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 DAVA 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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