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SEMrush Holdings, Inc. (SEMR) Surges 12.6%: Is This an Indication of Further Gains?

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SEMrush Holdings, Inc. (SEMR - Free Report) shares rallied 12.6% in the last trading session to close at $8.91. 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 8.8% gain over the past four weeks.

SEMrush is an online visibility management SaaS platform that enables businesses to run search engine optimization, pay-per-click and get results from online marketing. The optimism surrounding the Boston, MA-based company can be primarily attributable to continuously growing its user licenses per customer along with strength in product add-ons which is driving revenues.

This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -300%. Revenues are expected to be $67.49 million, up 25.6% 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 SEMrush Holdings, Inc., the consensus EPS estimate for the quarter has been revised 9.9% 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 SEMR 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 >>>>

SEMrush Holdings, Inc. belongs to the Zacks Internet - Software industry. Another stock from the same industry, DigitalOcean Holdings, Inc. (DOCN - Free Report) , closed the last trading session 3.2% higher at $28.84. Over the past month, DOCN has returned 17.9%.

For DigitalOcean Holdings, Inc., the consensus EPS estimate for the upcoming report has changed -7.7% over the past month to $0.19. This represents a change of +90% from what the company reported a year ago. DigitalOcean Holdings, Inc. currently has a Zacks Rank of #3 (Hold).


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