Stem (STEM) Surges 45.6%: Is This an Indication of Further Gains?

Stem, Inc. STEM shares soared 45.6% in the last trading session to close at $13.5. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.4% gain over the past four weeks.STEM is benefiting from its focus on high-margin software and services, particularly PowerTrack and managed services, along with cost reductions and improved operational efficiency. This company is expected to post quarterly loss of $3.00 per share in its upcoming report, which represents a year-over-year change of +31.8%. Revenues are expected to be $33.1 million, down 2.7% 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 Stem, 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 STEM 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 >>>>Stem belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Taboola.com Ltd. TBLA, closed the last trading session 1.1% lower at $3.54. Over the past month, TBLA has returned -1.9%.For Taboola.com, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. This represents a change of +1000% from what the company reported a year ago. Taboola.com currently has a Zacks Rank of #3 (Hold).One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stem, Inc. (STEM): Free Stock Analysis Report Taboola.com Ltd. (TBLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks