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EVO Payments (EVOP) Moves 8.8% Higher: Will This Strength Last?

EVO Payments (EVOP) shares soared 8.8% in the last trading session to close at $24.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.1% loss over the past four weeks.

EVO Payments' stock is gaining from the rise in digital transactions amid the ongoing recovery in the electronics payments space. The jump follows a massive industry-wide panic selling, which made financial services stocks attractive again. EVOP's ability to develop advanced technology for new products aiding cross-border processing for optimizing and enriching the customer experience is working in the company’s favor.

This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +28.6%. Revenues are expected to be $139.26 million, up 13.9% 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 EVO Payments, 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 EVOP 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 >>>>

EVO Payments is part of the Zacks Financial Transaction Services industry. Bread Financial Holdings (BFH), another stock in the same industry, closed the last trading session 2.2% lower at $39.54. BFH has returned -22.5% in the past month.

Bread Financial's consensus EPS estimate for the upcoming report has changed -3.2% over the past month to $2.37. Compared to the company's year-ago EPS, this represents a change of -60.4%. Bread Financial currently boasts a Zacks Rank of #3 (Hold).


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EVO Payments, Inc. (EVOP): Free Stock Analysis Report
 
Bread Financial Holdings, Inc. (BFH): Free Stock Analysis Report
 
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