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NCR (NCR) Stock Jumps 5.2%: Will It Continue to Soar?

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NCR shares soared 5.2% in the last trading session to close at $33.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.6% loss over the past four weeks.

NCR is benefiting from strong demand for its software and service solutions across banking, retail and hospitality industries. The recently acquired Cardtronics business has strengthened its NCR-as-a-Service strategy, expanded global footprints, and enhanced automated teller machine (“ATM”) network. Besides, the company continued to see traction of its point-of-sale and self-checkout solutions across food-drug-merchandise and convenience-fuel-retail customers.

This maker of ATMs and other hardware and software to handle payments is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $1.97 billion, up 17.7% 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 NCR, 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 NCR 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 >>>>

NCR is a member of the Zacks Computer - Integrated Systems industry. One other stock in the same industry, PAR Technology (PAR - Free Report) , finished the last trading session 2% higher at $38.63. PAR has returned 2.2% over the past month.

For PAR Technology, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.38. This represents a change of +2.6% from what the company reported a year ago. PAR Technology currently has a Zacks Rank of #2 (Buy).


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