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Qualys (QLYS) Moves 3.5% Higher: Will This Strength Last?

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Qualys (QLYS - Free Report) shares soared 3.5% in the last trading session to close at $121.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0% gain over the past four weeks.

Qualys is gaining from the surging demand for security and networking products amid the coronavirus crisis as a massive global workforce is working remotely. Accelerated digital transformations by organizations are also fueling demand for the company’s cloud-based security solutions.

This maker of security-analysis software is expected to post quarterly earnings of $0.80 per share in its upcoming report, which represents a year-over-year change of +1.3%. Revenues are expected to be $117.53 million, up 17.9% 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 Qualys, 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 QLYS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Qualys belongs to the Zacks Security industry. Another stock from the same industry, Mandiant , closed the last trading session 0.9% higher at $21.58. Over the past month, MNDT has returned -1.5%.

For Mandiant, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to -$0.10. This represents a change of -211.1% from what the company reported a year ago. Mandiant currently has a Zacks Rank of #4 (Sell).


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