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Strength Seen in AvidXchange Holdings, Inc. (AVDX): Can Its 6.8% Jump Turn into More Strength?

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AvidXchange Holdings, Inc. (AVDX - Free Report) shares rallied 6.8% in the last trading session to close at $8.90. 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 14.1% gain over the past four weeks.

The recent surge in AvidXchange’s share price reflects strong prospects. It is expected to report third-quarter 2022 top-line growth in double digits. AvidXchange is benefiting from the automation megatrend with its varied solutions, such as accounts payable automation software and payments solutions.

This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +69.4%. Revenues are expected to be $78.55 million, up 20.5% 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 AvidXchange 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 AVDX 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 >>>>

AvidXchange Holdings, Inc. is a member of the Zacks Internet - Software industry. One other stock in the same industry, Datadog (DDOG - Free Report) , finished the last trading session 7.7% higher at $88.75. DDOG has returned -4.6% over the past month.

Datadog's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.16. Compared to the company's year-ago EPS, this represents a change of +23.1%. Datadog currently boasts a Zacks Rank of #4 (Sell).


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