OneSpan (OSPN) Surges 5.2%: Is This an Indication of Further Gains?

OneSpan OSPN shares soared 5.2% in the last trading session to close at $11.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.9% loss over the past four weeks.

The optimism surrounding the stock can be attributed to the rising software mix, double-digit subscription and ARR growth, FIDO2 S3 adoption, expanding security offerings, strong cash generation, and disciplined capital returns.

This internet security company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +29.2%. Revenues are expected to be $59.85 million, down 2.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For OneSpan, the consensus EPS estimate for the quarter has been revised 3.8% 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 OSPN 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 >>>>

OneSpan belongs to the Zacks Internet - Software industry. Another stock from the same industry, Samsara Inc. IOT, closed the last trading session 4.8% higher at $25.42. Over the past month, IOT has returned -28.3%.

For Samsara Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. This represents a change of +18.2% from what the company reported a year ago. Samsara Inc. currently has a Zacks Rank of #3 (Hold).

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

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

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