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Rapid7 (RPD) Surges 31.2%: Is This an Indication of Further Gains?
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Rapid7 (RPD - Free Report) shares soared 31.2% in the last trading session to close at $52.32. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.1% gain over the past four weeks.
The upswing in share price can be attributed to Rapid7's growing annualized recurring revenues and expanding product portfolio.
This cybersecurity company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +212.5%. Revenues are expected to be $179.33 million, up 18.3% 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 Rapid7, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on RPD going forward to see if this recent jump can turn into more strength down the road.
Rapid7 is part of the Zacks Internet - Software industry. Monday.com (MNDY - Free Report) , another stock in the same industry, closed the last trading session 8% higher at $140.65. MNDY has returned 9% in the past month.
For Monday.com, the consensus EPS estimate for the upcoming report has changed +2.1% over the past month to -$0.42. This represents a change of -61.5% from what the company reported a year ago. Monday.com currently has a Zacks Rank of #2 (Buy).
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Rapid7 (RPD) Surges 31.2%: Is This an Indication of Further Gains?
Rapid7 (RPD - Free Report) shares soared 31.2% in the last trading session to close at $52.32. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.1% gain over the past four weeks.
The upswing in share price can be attributed to Rapid7's growing annualized recurring revenues and expanding product portfolio.
This cybersecurity company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +212.5%. Revenues are expected to be $179.33 million, up 18.3% 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 Rapid7, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on RPD 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 >>>>
Rapid7 is part of the Zacks Internet - Software industry. Monday.com (MNDY - Free Report) , another stock in the same industry, closed the last trading session 8% higher at $140.65. MNDY has returned 9% in the past month.
For Monday.com, the consensus EPS estimate for the upcoming report has changed +2.1% over the past month to -$0.42. This represents a change of -61.5% from what the company reported a year ago. Monday.com currently has a Zacks Rank of #2 (Buy).