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Yelp (YELP) Stock Jumps 10.2%: Will It Continue to Soar?

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Yelp (YELP - Free Report) shares soared 10.2% in the last trading session to close at $42.02. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.7% gain over the past four weeks.

Yelp is focusing on marketing efforts to boost traffic to websites. Advertising and subscriptions are major revenue sources for the company. Also, the company is dependent on consumer spending trends, making holiday spending a major deciding factor. The reopening of economies is driving the recovery in ad spending, which bodes well for the company in the long haul. These might have driven the YELP stock higher in last day’s trading session.

This online business reviews company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +45.5%. Revenues are expected to be $324.89 million, up 8.7% 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 Yelp, 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 YELP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Yelp belongs to the Zacks Internet - Content industry. Another stock from the same industry, Brightcove (BCOV - Free Report) , closed the last trading session 1.3% higher at $4.03. Over the past month, BCOV has returned -3.4%.

For Brightcove, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. This represents a change of -120% from what the company reported a year ago. Brightcove currently has a Zacks Rank of #3 (Hold).


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