FastlyFSLY shares ended the last trading session 13.7% higher at $29.65. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.4% gain over the past four weeks.
Fastly is benefiting from strong customer adoption across delivery, security and compute. Broader security suite and rising machine traffic is helping the company to create cross-sell opportunities.
This cloud software developer is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +71.4%. Revenues are expected to be $187.68 million, up 18.6% 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 Fastly, 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 FSLY 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 >>>>
Fastly is part of the Zacks Internet - Software industry. Xtend AI Robotics, Inc.XTND, another stock in the same industry, closed the last trading session 0.5% lower at $3.95. XTND has returned % in the past month.
For Xtend AI Robotics, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. This represents a change of +20% from what the company reported a year ago. Xtend AI Robotics, Inc. currently has a Zacks Rank of #3 (Hold).
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Fastly, Inc. (FSLY) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
