Upstart Holdings, Inc. UPST shares rallied 7.3% in the last trading session to close at $37.69. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.2% loss over the past four weeks.
The optimism surrounding the stock can be attributed to Upstart’s growing partner network. The company’s artificial intelligence (AI)-based lending platform has been selected by several banks and credit unions, which is contributing well to the top line. Investors seem to be also very optimistic about recent launches across Upstart’s product portfolio powered by generative AI and machine learning, which might favor the company’s performance in the long run.
This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -180%. Revenues are expected to be $150.14 million, up 11.6% 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 Upstart, 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 UPST going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Upstart belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Stem, Inc. STEM, closed the last trading session 4.3% higher at $0.45. Over the past month, STEM has returned -23.5%.
Stem's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. Compared to the company's year-ago EPS, this represents a change of -5.9%. Stem currently boasts a Zacks Rank of #3 (Hold).
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