DXC Technology Company. DXC shares soared 5.1% in the last trading session to close at $11.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.8% loss over the past four weeks.
The optimism surrounding the stock can be attributed to DXC completing the delivery of the Minerals and Energy Regulation System for South Australia’s Department for Energy and Mining, strengthening its public sector digital transformation business. The new platform replaces legacy systems and manual processes while creating a scalable foundation for future AI-enabled regulatory services, highlighting DXC’s ability to secure and deliver strategic modernization projects.
This company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -34.5%. Revenues are expected to be $2.99 billion, down 5.5% 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 DXC Technology, 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 DXC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
DXC Technology is part of the Zacks Computers - IT Services industry. Jack Henry JKHY, another stock in the same industry, closed the last trading session 1.8% higher at $145.12. JKHY has returned -14% in the past month.
For Jack Henry, the consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $2.04. This represents a change of +3.6% from what the company reported a year ago. Jack Henry currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).