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Magic Software (MGIC) Stock Jumps 6.2%: Will It Continue to Soar?
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Magic Software (MGIC - Free Report) shares soared 6.2% in the last trading session to close at $11.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% loss over the past four weeks.
The upswing can be attributed to Magic's strong top-line growth that's benefiting from a diversified business model despite unfavorable forex.
This business process integration software company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +3.6%. Revenues are expected to be $150.3 million, up 4.4% 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 Magic Software, 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 MGIC going forward to see if this recent jump can turn into more strength down the road.
Magic Software belongs to the Zacks Computer - Software industry. Another stock from the same industry, Smith Micro Software, Inc. (SMSI - Free Report) , closed the last trading session 3.9% lower at $1.11. Over the past month, SMSI has returned -8.7%.
Smith Micro Software, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. Compared to the company's year-ago EPS, this represents a change of +100%. Smith Micro Software, Inc. currently boasts a Zacks Rank of #3 (Hold).
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Magic Software (MGIC) Stock Jumps 6.2%: Will It Continue to Soar?
Magic Software (MGIC - Free Report) shares soared 6.2% in the last trading session to close at $11.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% loss over the past four weeks.
The upswing can be attributed to Magic's strong top-line growth that's benefiting from a diversified business model despite unfavorable forex.
This business process integration software company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +3.6%. Revenues are expected to be $150.3 million, up 4.4% 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 Magic Software, 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 MGIC 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 >>>>
Magic Software belongs to the Zacks Computer - Software industry. Another stock from the same industry, Smith Micro Software, Inc. (SMSI - Free Report) , closed the last trading session 3.9% lower at $1.11. Over the past month, SMSI has returned -8.7%.
Smith Micro Software, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. Compared to the company's year-ago EPS, this represents a change of +100%. Smith Micro Software, Inc. currently boasts a Zacks Rank of #3 (Hold).