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Qualtrics (XM) Stock Jumps 6.8%: Will It Continue to Soar?

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Qualtrics International shares rallied 6.8% in the last trading session to close at $17.68. 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 2.9% gain over the past four weeks.

The upswing came after Qualtrics revealed that it has agreed to be purchased by Silver Lake, in partnership with Canada Pension Plan (CPP) Investment Board. The deal values the company at approximately $12.1 billion. As per the term of the deal, Silver Lake and CPP Investment will pay $18.15 a share to buy Qualtrics in an all-cash deal.

This developer of application software is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $392.9 million, up 17.1% 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 Qualtrics, 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 XM 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 >>>>

Qualtrics is part of the Zacks Internet - Software industry. GAN Limited (GAN - Free Report) , another stock in the same industry, closed the last trading session 4.1% lower at $1.40. GAN has returned -29.1% in the past month.

For GAN Limited, the consensus EPS estimate for the upcoming report has changed -12% over the past month to -$0.14. This represents a change of +30% from what the company reported a year ago. GAN Limited currently has a Zacks Rank of #2 (Buy).

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