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Workiva (WK) Moves 17.6% Higher: Will This Strength Last?

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Workiva (WK - Free Report) shares rallied 17.6% in the last trading session to close at $76.15. 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 4.8% loss over the past four weeks.

The recent surge in Workiva’s share price is due to a speculation that the company has drawn a takeover interest from Thomas Bravo and TPG. Reportedly, the two private equity firms held financing discussions with direct lenders to support a potential transaction.

This maker of software for managing regulatory filings is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of -273.3%. Revenues are expected to be $132.42 million, up 17.5% 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 Workiva, 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 WK 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 >>>>

Workiva is part of the Zacks Internet - Software industry. KANZHUN LIMITED Sponsored ADR (BZ - Free Report) , another stock in the same industry, closed the last trading session 0.7% higher at $19.39. BZ has returned -15.4% in the past month.

For KANZHUN LIMITED Sponsored ADR, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. This represents a change of -46.2% from what the company reported a year ago. KANZHUN LIMITED Sponsored ADR currently has a Zacks Rank of #3 (Hold).


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