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Stem, Inc. (STEM) Soars 22.5%: Is Further Upside Left in the Stock?

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Stem, Inc. (STEM - Free Report) shares rallied 22.5% in the last trading session to close at $10.69. 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 24.5% gain over the past four weeks.

The recent surge in the company’s share price reflects positive impact on sales growth from Stem’s acquisition of AlsoEnergy. The two companies have a 30% customer overlap between the two organizations, which provides excellent cross selling opportunities for Stem.

Also the company has successfully implemented price increases for their PowerTrack software which is impacting topline growth positively.

This company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +5.3%. Revenues are expected to be $59.96 million, up 210% 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 Stem, Inc., 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 STEM 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 >>>>

Stem, Inc. is part of the Zacks Computers - IT Services industry. Epam (EPAM - Free Report) , another stock in the same industry, closed the last trading session 5.3% higher at $342.79. EPAM has returned 5.9% in the past month.

For Epam, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.71. This represents a change of -16.6% from what the company reported a year ago. Epam currently has a Zacks Rank of #3 (Hold).

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