Back to top

Image: Bigstock

Gartner (IT) Moves 4.7% Higher: Will This Strength Last?

Read MoreHide Full Article

Gartner (IT - Free Report) shares rallied 4.7% in the last trading session to close at $283.20. 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 10.7% loss over the past four weeks.

The stock is currently benefiting from the company’s strong non-subscription growth and record retention rates.

This technology information and analysis company is expected to post quarterly earnings of $1.92 per share in its upcoming report, which represents a year-over-year change of -4%. Revenues are expected to be $1.24 billion, up 12.5% 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 Gartner, the consensus EPS estimate for the quarter has been revised 19.8% 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 IT 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 >>>>

Gartner is part of the Zacks Consulting Services industry. Huron Consulting (HURN - Free Report) , another stock in the same industry, closed the last trading session 2.1% higher at $45.70. HURN has returned 0.6% in the past month.

For Huron Consulting, the consensus EPS estimate for the upcoming report has changed -39.8% over the past month to $0.31. This represents a change of -11.4% from what the company reported a year ago. Huron Consulting currently has a Zacks Rank of #2 (Buy).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Huron Consulting Group Inc. (HURN) - free report >>

Gartner, Inc. (IT) - free report >>

Published in