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QuinStreet (QNST) Surges 11.8%: Is This an Indication of Further Gains?

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QuinStreet (QNST - Free Report) shares rallied 11.8% in the last trading session to close at $10.45. 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 4.2% gain over the past four weeks.

QuinStreet is riding on the rising demand for its performance-based marketing and search engine marketing services. The company is benefiting from the accelerated shift from an offline to an online business model across industries. The optimism surrounding the stocks could also be due to its strong balance sheet and solid prospects.

This online marketing services company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -180%. Revenues are expected to be $123.72 million, down 13.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For QuinStreet, the consensus EPS estimate for the quarter has been revised 18.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on QNST 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 >>>>

QuinStreet is part of the Zacks Internet - Delivery Services industry. Vipshop Holdings Limited (VIPS - Free Report) , another stock in the same industry, closed the last trading session 0.7% lower at $15.34. VIPS has returned 5.1% in the past month.

For Vipshop Holdings Limited, the consensus EPS estimate for the upcoming report has changed -0.8% over the past month to $0.40. This represents a change of +11.1% from what the company reported a year ago. Vipshop Holdings Limited currently has a Zacks Rank of #1 (Strong Buy).

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