Crexendo CXDO shares soared 11.3% in the last trading session to close at $6.98. 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% gain over the past four weeks.
Crexendo is benefiting from its strong organic growth, particularly in its Software Solutions segment, which saw a 25% increase in the third quarter of 2024, along with a growing customer base transitioning from major competitors like Cisco and Microsoft, and its expanding international presence, including new wins in Australia and Africa.
This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -16.7%. Revenues are expected to be $15.66 million, up 10.6% 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 Crexendo, 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 CXDO 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 >>>>
Crexendo belongs to the Zacks Internet - Services industry. Another stock from the same industry, Sprout Social SPT, closed the last trading session 2.2% lower at $28.96. Over the past month, SPT has returned -10.5%.
For Sprout Social , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.15. This represents a change of +650% from what the company reported a year ago. Sprout Social currently has a Zacks Rank of #4 (Sell).
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