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Crexendo (CXDO) Surges 5.5%: Is This an Indication of Further Gains?

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Crexendo (CXDO - Free Report) shares rallied 5.5% in the last trading session to close at $5.80. 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 25.6% gain over the past four weeks.

CXDO is riding on its expanding clientele. Its cloud communication platform’s user base has now exceeded four million globally.

This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $13.76 million, up 20.2% 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 Crexendo, 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 CXDO 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 >>>>

Crexendo is part of the Zacks Internet - Services industry. The Trade Desk (TTD - Free Report) , another stock in the same industry, closed the last trading session 3.8% higher at $69.39. TTD has returned -9% in the past month.

The Trade Desk's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.42. Compared to the company's year-ago EPS, this represents a change of +10.5%. The Trade Desk currently boasts a Zacks Rank of #3 (Hold).

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