EverCommerce (EVCM) Moves 5.4% Higher: Will This Strength Last?

EverCommerce EVCM shares ended the last trading session 5.4% higher at $11.57. 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 21.9% gain over the past four weeks.

Fundamental/tangible driver (s) to be added by Analyst

This business software company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +433.3%. Revenues are expected to be $152.2 million, up 2.8% 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 EverCommerce, 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 EVCM going forward to see if this recent jump can turn into more strength down the road.

EVCM shares are benefiting from growing adoption of AI powered workflow tools like ZyraTalk AI and EverHealth AI Scribe, rising cross sell momentum across verticals and steady expansion of integrated payments and recurring revenue.

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 >>>>

EverCommerce is a member of the Zacks Internet - Software industry. One other stock in the same industry, Match Group MTCH, finished the last trading session 4.6% higher at $40.11. MTCH has returned 5% over the past month.

For Match Group, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.97. This represents a change of +34.7% from what the company reported a year ago. Match Group currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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