Ziff Davis (ZD – Free Report) shares climbed 4% in the last trading session to close at $105.06. The move was supported by solid volume with significantly more shares changing hands than in a normal session. That compares to the stock’s 8.9% loss over the past four weeks.
The rise in share price can be attributed to the news that Everyday Health Group, a division of Ziff Davis, has acquired Buckinghamshire-based Lifecycle Marketing Ltd.
This internet and cloud services company is expected to post quarterly earnings of $2.08 per share in its next report, representing a year-over-year change of -33.1%. Revenue is expected to be $405.06 million, down 13.7% from the prior year quarter.
While earnings and revenue growth expectations are important in gauging a stock’s potential strength, empirical research shows a strong correlation between trends in earnings estimate revisions and short-term stock price movements. term.
For Ziff Davis, the consensus EPS estimate for the quarter remained unchanged for the past 30 days. And the price of a stock generally does not continue to rise in the absence of any trend in earnings estimate revisions. So be sure to keep an eye on ZD to see if that recent jump can turn into more strength down the road.
The stock currently carries a Zacks rank #3 (Hold). You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>