Anaplan shares soared 6.4% in the last trading session to close at $53.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% loss over the past four weeks.

The increase in share price can be attributed to the news that iPaaS technology provider, OneCloud, has launched the Anaplan BizApp to support Anaplan Transactional APIs. This is expected to help users seamlessly exchange data across their platforms and applications, thereby driving demand for Anaplan Transactional APIs.

Markedly, Anaplan is benefiting from ongoing digital transformation, optimism over growing billings, new customer additions and increasing number of large deals.
 

Price and Consensus

This software developer is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +10%. Revenues are expected to be $127.02 million, up 22.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Anaplan, 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 PLAN 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 >>>>