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Priority Technology (PRTH) Surges 5.2%: Is This an Indication of Further Gains?

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Priority Technology (PRTH - Free Report) shares soared 5.2% in the last trading session to close at $7.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% loss over the past four weeks.

The stock recorded this price increase as the company benefits from a favorable shift in its business mix, and the scaling of higher-margin enterprise and B2B businesses.

This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +328.6%. Revenues are expected to be $253.16 million, up 11.5% 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 Priority Technology, the consensus EPS estimate for the quarter has been revised 7.1% 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 PRTH going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Priority Technology is part of the Zacks Technology Services industry. Owlet, Inc. (OWLT - Free Report) , another stock in the same industry, closed the last trading session 1.8% higher at $9. OWLT has returned 28.3% in the past month.

For Owlet, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.23. This represents a change of -866.7% from what the company reported a year ago. Owlet currently has a Zacks Rank of #3 (Hold).


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