Fiverr (FVRR) Surges 5.0%: Is This an Indication of Further Gains?

Fiverr International FVRR shares rallied 5% in the last trading session to close at $16.49. 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 21.4% loss over the past four weeks.

The optimism surrounding the stock can be attributed to accelerating AI-driven demand, strong growth in higher-value upmarket projects, expanding Dynamic Matching and Managed Services, rising spend per buyer, and robust Services revenue growth.

This online marketplace for freelance services is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +18.8%. Revenues are expected to be $108.71 million, up 4.9% 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 Fiverr, 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 FVRR 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 >>>>

Fiverr is part of the Zacks Internet - Commerce industry. CarGurus CARG, another stock in the same industry, closed the last trading session 1.5% higher at $34.16. CARG has returned -13.5% in the past month.

CarGurus' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.61. Compared to the company's year-ago EPS, this represents a change of +10.9%. CarGurus currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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