GDEV Inc. (GDEV) Soars 10.1%: Is Further Upside Left in the Stock?

GDEV Inc. (GDEV) shares soared 10.1% in the last trading session to close at $15.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.7% loss over the past four weeks.

GDEV stock surged, driven by strong momentum buying and a spike in trading volumes after a recent dip, signaling renewed investor interest.
The rally was also supported by a positive fundamental tailwind, including improving user monetization and stable cash flow generation from its core gaming portfolio.

This company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -13%. Revenues are expected to be $91.5 million, down 5.7% 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 GDEV Inc., the consensus EPS estimate for the quarter has been revised 3.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GDEV 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 >>>>

GDEV Inc. is part of the Zacks Gaming industry. Melco Resorts (MLCO), another stock in the same industry, closed the last trading session 0.5% higher at $5.66. MLCO has returned 0.7% in the past month.

Melco's consensus EPS estimate for the upcoming report has changed -12.5% over the past month to $0.08. Compared to the company's year-ago EPS, this represents a change of -33.3%. Melco currently boasts a Zacks Rank of #3 (Hold).

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

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