Benefitfocus shares soared 48.2% in the last trading session to close at $10.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.4% gain over the past four weeks.
The upswing in share price is attributed to improving prospects. SAP sales channel has continued to be a solid growth driver for the business as Benefitfocus expects 2 times pipeline growth in the second half of 2022. Also, the second half launch of Health Insight 2.0, and enhanced billing feature is expected to aid in its top line growth.
This human resources software provider is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +26.3%. Revenues are expected to be $55.98 million, down 9.8% 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 Benefitfocus, the consensus EPS estimate for the quarter has been revised 19.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BNFT 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 >>>>
Benefitfocus belongs to the Zacks Internet - Software industry. Another stock from the same industry, New Relic , closed the last trading session 4.2% lower at $56.44. Over the past month, NEWR has returned -1.8%.
For New Relic, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. This represents a change of +40% from what the company reported a year ago. New Relic currently has a Zacks Rank of #2 (Buy).
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Benefitfocus (BNFT) Moves 48.2% Higher: Will This Strength Last?
Benefitfocus shares soared 48.2% in the last trading session to close at $10.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.4% gain over the past four weeks.
The upswing in share price is attributed to improving prospects. SAP sales channel has continued to be a solid growth driver for the business as Benefitfocus expects 2 times pipeline growth in the second half of 2022. Also, the second half launch of Health Insight 2.0, and enhanced billing feature is expected to aid in its top line growth.
This human resources software provider is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +26.3%. Revenues are expected to be $55.98 million, down 9.8% 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 Benefitfocus, the consensus EPS estimate for the quarter has been revised 19.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BNFT 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 >>>>
Benefitfocus belongs to the Zacks Internet - Software industry. Another stock from the same industry, New Relic , closed the last trading session 4.2% lower at $56.44. Over the past month, NEWR has returned -1.8%.
For New Relic, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. This represents a change of +40% from what the company reported a year ago. New Relic currently has a Zacks Rank of #2 (Buy).