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Integral Ad Science (IAS) Surges 20.5%: Is This an Indication of Further Gains?

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Integral Ad Science (IAS - Free Report) shares ended the last trading session 20.5% higher at $10.19. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.2% loss over the past four weeks.

The stock rose after the company announced a definitive acquisition agreement with Novacap, a North American private equity firm. Under the deal, Novacap will acquire IAS for $10.30 per share in cash, effectively taking the company private.

This digital advertising verification company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -10%. Revenues are expected to be $149.2 million, up 11.7% 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 Integral Ad Science, 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 IAS 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 >>>>

Integral Ad Science belongs to the Zacks Advertising and Marketing industry. Another stock from the same industry, Teads Holding Co. (TEAD - Free Report) , closed the last trading session 3% higher at $1.72. Over the past month, TEAD has returned -5.1%.

For Teads Holding Co., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.15. This represents a change of -236.4% from what the company reported a year ago. Teads Holding Co. currently has a Zacks Rank of #4 (Sell).


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