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MiX Telematics Limited (MIXT) Soars 6.4%: Is Further Upside Left in the Stock?

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MiX Telematics Limited (MIXT - Free Report) shares ended the last trading session 6.4% higher at $5.95. 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 9.1% loss over the past four weeks.

The upswing in share price can be attributed to Mix Telematics' expanding customer base.

MiX Telematics and PowerFleet recently announced that they have entered into a definitive agreement to form one of the largest mobile asset Internet of Things (IoT) Software-as-a-Service (SaaS) providers in the world.

This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +333.3%. Revenues are expected to be $36.03 million, up 2.2% 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 MiX Telematics Limited, 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 MIXT 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 >>>>

MiX Telematics Limited is part of the Zacks Internet - Software industry. Splunk (SPLK - Free Report) , another stock in the same industry, closed the last trading session 0.2% higher at $148.25. SPLK has returned 22.4% in the past month.

For Splunk, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.12. This represents a change of +34.9% from what the company reported a year ago. Splunk currently has a Zacks Rank of #1 (Strong Buy).


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