Similarweb SMWB shares soared 10.4% in the last trading session to close at $6.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 34.9% gain over the past four weeks.
Similarweb is benefiting from expanding AI-related revenues, strong adoption of its AI solutions and data integrations, improved sales productivity, high gross retention, and a growing pipeline of commercial opportunities.
This digital intelligence company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $75.5 million, up 6.4% 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 Similarweb, 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 SMWB 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 >>>>
Similarweb is a member of the Zacks Internet - Content industry. One other stock in the same industry, Webtoon Entertainment WBTN, finished the last trading session 3.2% higher at $12.04. WBTN has returned -5% over the past month.
Webtoon's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. Compared to the company's year-ago EPS, this represents a change of -71.4%. Webtoon currently boasts a Zacks Rank of #3 (Hold).
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Similarweb Ltd. (SMWB): Free Stock Analysis Report
WEBTOON Entertainment Inc. (WBTN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).