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Issuer Direct (ISDR) Moves 10.9% Higher: Will This Strength Last?

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Issuer Direct Corporation (ISDR - Free Report) shares ended the last trading session 10.9% higher at $30.50. 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 8.3% loss over the past four weeks.

Issuer Direct’s rally is primarily driven by optimism over the company’s strong momentum in its communications business. Growing popularity for the company’s ACCESSWIRE product and increase in subscriptions of Platform id., bode well. It’s worth noting that in third-quarter 2021, the company signed 40 new Platform id. subscriptions with customers worth $306,000 of total annual contract value.

This company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -21.9%. Revenues are expected to be $5.46 million, up 15.2% 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 Issuer Direct Corporation, 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 ISDR 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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