Strength Seen in SPS Commerce (SPSC): Can Its 5.2% Jump Turn into More Strength?

SPS Commerce (SPSC) shares soared 5.2% in the last trading session to close at $129.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.1% loss over the past four weeks.

The stock has recorded this price rise as the company gains due to a competitive product portfolio; improved collaboration with vendors, retailers and grocers; and acquisitions of Vision33’s SAP Business One integration technology, Traverse Systems and SupplyPike.

This provider of supply chain software services to businesses is expected to post quarterly earnings of $0.85 per share in its upcoming report, which represents a year-over-year change of -1.2%. Revenues are expected to be $179.53 million, up 20% 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 SPS Commerce, 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 SPSC 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 >>>>

SPS Commerce is part of the Zacks Business - Services industry. Crawford & Company B (CRD.B), another stock in the same industry, closed the last trading session 2.1% higher at $10.56. CRD.B has returned -11.3% in the past month.

For Crawford & Company B, the consensus EPS estimate for the upcoming report has changed -13% over the past month to $0.20. This represents a change of +53.9% from what the company reported a year ago. Crawford & Company B currently has a Zacks Rank of #3 (Hold).

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SPS Commerce, Inc. (SPSC) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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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.