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BTRS Holdings Inc. (BTRS) Moves 60.8% Higher: Will This Strength Last?

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BTRS Holdings Inc. shares ended the trading session on Wednesday 60.8% higher at $9.28. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.3% loss over the past four weeks.

This increased investor optimism can be attributed to the news of its acquisition by EQT X fund for $9.5 per share in cash, representing a total enterprise value of $1.7 billion.

This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of -133.3%. Revenues are expected to be $43.62 million, up 33.3% 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 BTRS Holdings 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 BTRS 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 >>>>

BTRS Holdings Inc. is part of the Zacks Technology Services industry. Block (SQ - Free Report) , another stock in the same industry, closed the Wednesday trading session 7.2% higher at $59.07. SQ has returned -20.2% in the past month.

Block's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. Compared to the company's year-ago EPS, this represents a change of -29.7%. Block currently boasts a Zacks Rank of #3 (Hold).

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