Allot Communications (ALLT) Stock Jumps 10.2%: Will It Continue to Soar?

Allot Communications ALLT shares rallied 10.2% in the last trading session to close at $7.12. 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 17.8% loss over the past four weeks.

The stock is benefiting from the company’s expanding business across product lines and markets, which is resulting in continued top-line strength. Moreover, the company is poised to witness increase in demand for its software and solutions due to heightened risk of global cyberattacks following the Russia invasion of Ukraine.

This internet protocol services company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -216.7%. Revenues are expected to be $32.1 million, up 3% 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 Allot Communications, 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 ALLT 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 >>>>

Allot Communications belongs to the Zacks Technology Services industry. Another stock from the same industry, Inspired Entertainment INSE, closed the last trading session 3.1% higher at $10.65. Over the past month, INSE has returned -21.8%.

For Inspired Entertainment, the consensus EPS estimate for the upcoming report has changed -14.6% over the past month to -$0.12. This represents a change of +82.6% from what the company reported a year ago. Inspired Entertainment currently has a Zacks Rank of #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.