Agilysys (AGYS) shares soared 13.9% in the last trading session to close at $70.40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 8% loss over the past four weeks.
Agilysys extended its rally, driven by its expertise in enterprise architecture, infrastructure optimization, storage and resource management, as well as business continuity. Further, its recent agreement with Marriott International regarding the deployment of its cloud-native property management system software across the latter’s luxury, premium and selected service hotels located in the United States and Canada over the coming years, remains a positive.
This software provider for the lodging and leisure sectors is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +26.3%. Revenues are expected to be $48.1 million, up 21.9% 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 Agilysys, 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 AGYS 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 >>>>
Agilysys belongs to the Zacks Computer – Integrated Systems industry. Another stock from the same industry, IBM (IBM), closed the last trading session 5% lower at $142.36. Over the past month, IBM has returned 3.7%.
For IBM
, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.57. This represents a change of +6.6% from what the company reported a year ago. IBM currently has a Zacks Rank of #3 (Hold).
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