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CompoSecure (CMPO) Moves 7.9% Higher: Will This Strength Last?

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CompoSecure, Inc. (CMPO - Free Report) shares rallied 7.9% in the last trading session to close at $6.84. 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 33.8% gain over the past four weeks.

CompoSecure extended its rally for the fourth straight day, driven by strength in payment card technology, based on which it provides metal payment cards backed with Arculus security and authentication capabilities. This prowess fetched it the top rank in the Metal Payment Card research report by the global technology market intelligence firm, ABI Research. Also, it recently got a Bullish Sentiment Score from InvestorsObserver, contributing to its positive market sentiment.

This company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $98.2 million, up 3% 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 CompoSecure, 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 CMPO 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 >>>>

CompoSecure belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Bread Financial Holdings (BFH - Free Report) , closed the last trading session 4.2% lower at $38.49. Over the past month, BFH has returned 9.7%.

For Bread Financial, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $3.21. This represents a change of -64.7% from what the company reported a year ago. Bread Financial currently has a Zacks Rank of #3 (Hold).


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