Klaviyo, Inc. KVYO shares soared 6.2% in the last trading session to close at $14.9. 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.
KVYO shares are benefitting from accelerating revenue growth a record operating margin raised full year guidance and an expanded share buyback program signalling improving profitability and management confidence in the business.
This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +18.8%. Revenues are expected to be $361.53 million, up 23.3% 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 Klaviyo, Inc., 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 KVYO 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 >>>>
Klaviyo, Inc. is a member of the Zacks Internet - Software industry. One other stock in the same industry, CI&T Inc. CINT, finished the last trading session 0.6% lower at $3.35. CINT has returned -3.7% over the past month.
For CI&T, the consensus EPS estimate for the upcoming report has changed -5.9% over the past month to $0.11. This represents a change of +57.1% from what the company reported a year ago. CI&T currently has a Zacks Rank of #3 (Hold).
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Klaviyo, Inc. (KVYO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).