Priority Technology (PRTH) Moves 10.8% Higher: Will This Strength Last?

Priority Technology (PRTH) shares soared 10.8% in the last trading session to close at $7.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.4% gain over the past four weeks.

The stock experienced this price increase as the company benefited from the continued success of the Priority Connected Commerce engine, with top-line growth exceeding 11% year over year and adjusted gross profit rising 13%.

This company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of +7.7%. Revenues are expected to be $259 million, up 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 Priority Technology, 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 PRTH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Priority Technology is a member of the Zacks Technology Services industry. One other stock in the same industry, V2X (VVX), finished the last trading session 3.5% lower at $85.55. VVX has returned 23.6% over the past month.

For V2X, the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $1.45. This represents a change of +9% from what the company reported a year ago. V2X currently has a Zacks Rank of #2 (Buy).

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

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