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Strength Seen in Paymentus (PAY): Can Its 7.8% Jump Turn into More Strength?

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Paymentus (PAY - Free Report) shares soared 7.8% in the last trading session to close at $24.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 44.4% gain over the past four weeks.

The stock is benefitting from the company’s growth driven by increased transactions from existing billers, launch of new billers and growing activity in its Instant Payment Network (IPN) business.

This electronic bill payment services is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +300%. Revenues are expected to be $174.75 million, up 17.8% 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 Paymentus, the consensus EPS estimate for the quarter has been revised 36.4% 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 PAY 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 >>>>

Paymentus belongs to the Zacks Technology Services industry. Another stock from the same industry, Accolade (ACCD - Free Report) , closed the last trading session 2.1% higher at $9.83. Over the past month, ACCD has returned -17.6%.

For Accolade, the consensus EPS estimate for the upcoming report has changed -3.3% over the past month to -$0.11. This represents a change of +73.8% from what the company reported a year ago. Accolade currently has a Zacks Rank of #3 (Hold).


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