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Paymentus (PAY) Moves 5.6% Higher: Will This Strength Last?

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Paymentus (PAY - Free Report) shares ended the last trading session 5.6% higher at $16.53. 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 13.2% gain over the past four weeks.

The positive response from investors can be correlated with the improving margins due to the company’s investment in innovation framework, strong backlog and bookings. The company is also benefitting from expanded distribution channels.

This electronic bill payment services is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $152.65 million, up 19.1% 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 Paymentus, 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 PAY 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 >>>>

Paymentus is part of the Zacks Technology Services industry. Coursera (COUR - Free Report) , another stock in the same industry, closed the last trading session 1.6% higher at $18.40. COUR has returned 7.2% in the past month.

For Coursera, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. This represents no change from what the company reported a year ago. Coursera currently has a Zacks Rank of #2 (Buy).


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