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Endava PLC Sponsored ADR (DAVA) Stock Jumps 4.4%: Will It Continue to Soar?

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Endava PLC Sponsored ADR (DAVA - Free Report) shares rallied 4.4% in the last trading session to close at $144.10. 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 1.5% gain 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. Endava ended fourth-quarter fiscal 2021 with 615 active clients, up from 416 at the end of the same period in the prior year. Revenues from clients paying more than £5 million increased 29.5% year over year.

This company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +70.6%. Revenues are expected to be $187.76 million, up 52.8% 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 Endava PLC Sponsored ADR, the consensus EPS estimate for the quarter has been revised 6.7% 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 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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