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i3 Verticals (IIIV) Soars 10.8%: Is Further Upside Left in the Stock?

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i3 Verticals (IIIV - Free Report) shares soared 10.8% in the last trading session to close at $24.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8% loss over the past four weeks.

The stock is benefiting from the surging global demand for payment enabled software solutions, which is resulting in continued top-line strength. The ongoing economic recovery is also aiding i3 Verticals with a higher number of transactions despite a foreign-exchange volatility linked to the Russia-Ukraine conflict.

This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +38.5%. Revenues are expected to be $76.77 million, up 26.5% 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 i3 Verticals, 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 IIIV 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 >>>>

i3 Verticals belongs to the Zacks Internet - Software industry. Another stock from the same industry, Materialise (MTLS - Free Report) , closed the last trading session 8% higher at $13.63. Over the past month, MTLS has returned -20%.

For Materialise, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of -71.4% from what the company reported a year ago. Materialise currently has a Zacks Rank of #4 (Sell).

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