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Harte-Hanks (HHS) Stock Jumps 5.6%: Will It Continue to Soar?

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Harte-Hanks (HHS - Free Report) shares rallied 5.6% in the last trading session to close at $11.12. 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 22.6% gain over the past four weeks.

The stock is benefiting from the company’s diversified revenues across segments and customers, and its growing presence in the healthcare and consumer products verticals.

 

This marketing company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +88.2%. Revenues are expected to be $49.3 million, up 0.1% 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 Harte-Hanks, 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 HHS 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 >>>>

Harte-Hanks is part of the Zacks Advertising and Marketing industry. Omnicom (OMC - Free Report) , another stock in the same industry, closed the last trading session 0.2% higher at $64.75. OMC has returned -13.9% in the past month.

For Omnicom, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.85. This represents a change of +26.7% from what the company reported a year ago. Omnicom currently has a Zacks Rank of #5 (Strong Sell).


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