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Strength Seen in ExlService Holdings (EXLS): Can Its 4.1% Jump Turn into More Strength?

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ExlService Holdings (EXLS - Free Report) shares rallied 4.1% in the last trading session to close at $148.43. 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 2.8% gain over the past four weeks.

The uptick can be attributed to the company's better-than-expected earnings amd revenue performance and raised guidance.

This provider of outsourcing services is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +15.8%. Revenues are expected to be $329.93 million, up 20% 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 ExlService Holdings, the consensus EPS estimate for the quarter has been revised marginally 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 EXLS going forward to see if this recent jump can turn into more strength down the road.

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

ExlService Holdings belongs to the Zacks Outsourcing industry. Another stock from the same industry, Automatic Data Processing (ADP - Free Report) , closed the last trading session 3.9% higher at $218.79. Over the past month, ADP has returned -3.5%.

For ADP, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.47. This represents a change of +22.5% from what the company reported a year ago. ADP currently has a Zacks Rank of #2 (Buy).

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