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CoreCard (CCRD) Surges 10.0%: Is This an Indication of Further Gains?

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CoreCard Corporation (CCRD - Free Report) shares soared 10% in the last trading session to close at $28.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.7% loss over the past four weeks.

This increased investor optimism can be attributed to the news of its merger with Euronet, a global leader in payments processing and cross-border transactions. The duo announced a definitive agreement for Euronet to acquire CoreCard in a stock-for-stock transaction valued at approximately $248 million, or $30 per share.

 

This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +80%. Revenues are expected to be $16.45 million, up 19.2% 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 CoreCard, 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 CCRD 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 >>>>

CoreCard is a member of the Zacks Technology Services industry. One other stock in the same industry, Allot Communications (ALLT - Free Report) , finished the last trading session 0.3% higher at $7.74. ALLT has returned -9.4% over the past month.

Allot Communications' consensus EPS estimate for the upcoming report has changed -50% over the past month to $0. Compared to the company's year-ago EPS, this represents a change of +100%. Allot Communications currently boasts a Zacks Rank of #3 (Hold).


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