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Strength Seen in Phunware (PHUN): Can Its 75.3% Jump Turn into More Strength?

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Phunware (PHUN - Free Report) shares rallied 75.3% in the last trading session to close at $12.41. 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 58.6% loss over the past four weeks.

The upswing came after former U.S. President Donald Trump’s triple wins in Idaho, Michigan and Missouri caucuses, clinching much closer to the presidential nomination from The Republican Party. Trump previously collaborated with Phunware for developing mobile applications for his campaign. It seems that investors are considering Phunware to get new contracts for Trump’s re-election campaign.

This company is expected to post quarterly loss of $2.33 per share in its upcoming report, which represents a year-over-year change of +41.8%. Revenues are expected to be $2.3 million, down 51.9% 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 Phunware, the consensus EPS estimate for the quarter has been revised 16.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PHUN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Phunware is part of the Zacks Internet - Software industry. Enfusion, Inc. (ENFN - Free Report) , another stock in the same industry, closed the last trading session 0.8% lower at $8.60. ENFN has returned 10.5% in the past month.

Enfusion, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents a change of +100%. Enfusion, Inc. currently boasts a Zacks Rank of #4 (Sell).


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