Backblaze, Inc. (BLZE) shares soared 7.1% in the last trading session to close at $6.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 28.1% gain over the past four weeks.
The upswing in Backblaze’s share price reflects investors’ bullish sentiments as it invests in its B2 Cloud Storage offering, representing 40% of its revenues in the third quarter of 2022. B2 has a higher growth rate since it is addressing global megatrends such as the large storage cloud market, which is driving its prospects.
This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +26.3%. Revenues are expected to be $22.71 million, up 21.5% 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 Backblaze, Inc., 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 BLZE going forward to see if this recent jump can turn into more strength down the road.
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 >>>>
Backblaze, Inc. is a member of the Zacks Internet – Software industry. One other stock in the same industry, F5 Networks (FFIV), finished the last trading session 0.3% higher at $143.51. FFIV has returned -7.7% over the past month.
For F5
, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.34. This represents a change of -19% from what the company reported a year ago. F5 currently has a Zacks Rank of #3 (Hold).
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