In This Article:
VERRA MOBILITY CORP VRRM shares rallied 11.5% in the last trading session to close at $22.51. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.8% loss over the past four weeks.
Verra Mobility is benefiting from strong travel demand, growth in electronic tolling infrastructure, and expanding automated photo enforcement programs, particularly in government solutions and commercial services.
This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $219.25 million, up 4.5% 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 Verra Mobility, the consensus EPS estimate for the quarter has been revised 2.5% 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 VRRM 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 >>>>
Verra Mobility is a member of the Zacks Internet - Software industry. One other stock in the same industry, HubSpot HUBS, finished the last trading session 1.9% lower at $571.29. HUBS has returned -19.6% over the past month.
HubSpot's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.78. Compared to the company's year-ago EPS, this represents a change of +6%. HubSpot currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
VERRA MOBILITY CORP (VRRM) : Free Stock Analysis Report
HubSpot, Inc. (HUBS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).