Back to top

Image: Bigstock

Earnings Estimates Rising for SEMrush Holdings, Inc. (SEMR): Will It Gain?

Read MoreHide Full Article

Investors might want to bet on SEMrush Holdings, Inc. (SEMR - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For SEMrush Holdings, Inc. Strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

The earnings estimate of $0.03 per share for the current quarter represents a change of +137.5% from the number reported a year ago.

Over the last 30 days, one estimate has moved higher for SEMrush Holdings, Inc. compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 116.67%.

Current-Year Estimate Revisions

The company is expected to earn $0.07 per share for the full year, which represents a change of +136.84% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for SEMrush Holdings, Inc. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 140%.

Favorable Zacks Rank

The promising estimate revisions have helped SEMrush Holdings, Inc. earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on SEMrush Holdings, Inc. because of its solid estimate revisions, as evident from the stock's 7.8% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

SEMrush Holdings, Inc. (SEMR) - free report >>

Published in