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ACV Auctions Inc. (ACVA) Soars 6.2%: Is Further Upside Left in the Stock?

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ACV Auctions Inc. (ACVA - Free Report) shares soared 6.2% in the last trading session to close at $7.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.3% loss over the past four weeks.

ACV is benefiting from market share gains and strong adoption of its value-added services among automotive dealers.

This company is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of -183.3%. Revenues are expected to be $111.25 million, up 14.3% 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 ACV Auctions Inc., the consensus EPS estimate for the quarter has been revised 9.4% 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 ACVA 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 >>>>

ACV Auctions Inc. is a member of the Zacks Internet - Commerce industry. One other stock in the same industry, Booking Holdings (BKNG - Free Report) , finished the last trading session 3.3% higher at $1,906.87. BKNG has returned -12.2% over the past month.

Booking Holdings' consensus EPS estimate for the upcoming report has changed -4.7% over the past month to $17.94. Compared to the company's year-ago EPS, this represents a change of +803.5%. Booking Holdings currently boasts a Zacks Rank of #2 (Buy).

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