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Strength Seen in Confluent (CFLT): Can Its 7.6% Jump Turn into More Strength?

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Confluent (CFLT - Free Report) shares ended the last trading session 7.6% higher at $22.3. 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 3.9% gain over the past four weeks.

Confluent is benefiting from strong DSP adoption, particularly Flink's exponential growth, and increasing multiyear customer commitments.

This data infrastructure software maker is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $292.05 million, up 16.7% 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 Confluent, 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 CFLT 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 >>>>

Confluent belongs to the Zacks Internet - Software industry. Another stock from the same industry, SEMrush Holdings, Inc. (SEMR - Free Report) , closed the last trading session 1.4% higher at $7.35. Over the past month, SEMR has returned -6.2%.

For SEMrush, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. This represents a change of +33.3% from what the company reported a year ago. SEMrush currently has a Zacks Rank of #3 (Hold).


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