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Couchbase, Inc. (BASE) Soars 6.3%: Is Further Upside Left in the Stock?

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Couchbase, Inc. (BASE - Free Report) shares ended the last trading session 6.3% higher at $19.03. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.4% gain over the past four weeks.

The optimism surrounding the stock can be attributed to increasing demand for cost-effective and high-performance database-as-a-service solutions. The Company offers cloud database for business applications on platform which delivers unmatched versatility, performance, scalability and financial value across cloud, on-premises, hybrid, distributed cloud and edge computing deployments.

The company is likely to benefit from increasing IT spending on software. As per the latest Gartner report, worldwide IT spending on software segment is likely to increase 12.3% year-over-year in 2023 as organizations are looking to “capture competitive advantages through increased productivity, automation and other software-driven transformation initiatives.” This bodes well for Couchbase’s prospects in the near-term.

This company is expected to post quarterly loss of $0.32 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $39.77 million, up 14.1% 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 Couchbase, 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 BASE 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 >>>>

Couchbase, Inc. is part of the Zacks Internet - Software industry. nCino (NCNO - Free Report) , another stock in the same industry, closed the last trading session 7.5% higher at $27.44. NCNO has returned -1.4% in the past month.

For nCino, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. This represents a change of +183.3% from what the company reported a year ago. nCino currently has a Zacks Rank of #3 (Hold).

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