Circle Internet Group, Inc. (CRCL) shares soared 7.9% in the last trading session to close at $91.78. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.7% gain over the past four weeks.
The increased investor optimism in the stock can be attributed to the recent announcement of the SEC’s five-year “Innovation Exemption,” which permits qualifying venues to facilitate trading in tokenized U.S. stocks, TD Cowen’s $92 target, Arc mainnet momentum, and lower Treasury yields.
This company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -42.2%. Revenues are expected to be $796.63 million, up 7.7% 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 Circle Internet Group, Inc., the consensus EPS estimate for the quarter has been revised marginally 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 CRCL 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 >>>>
Circle Internet Group, Inc. is part of the Zacks Financial - Miscellaneous Services industry. PRA Group (PRAA), another stock in the same industry, closed the last trading session 2.1% higher at $21. PRAA has returned 10.4% in the past month.
PRA Group's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.07. Compared to the company's year-ago EPS, this represents a change of +101.9%. PRA Group currently boasts a Zacks Rank of #1 (Strong Buy).
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Circle Internet Group, Inc. (CRCL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).