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Cardlytics (CDLX) Soars 80.9%: Is Further Upside Left in the Stock?

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Cardlytics (CDLX - Free Report) shares rallied 80.9% in the trading session on Tuesday to close at $6.24. 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 30.2% loss over the past four weeks.

The stock recorded this price increase in response to the company’s raised guidance for the first quarter of 2023. The company now expected revenues to be between $63.5 million and $66.5 million compared with the prior outlook of $54 million to $63 million. The revised revenue guidance is way above the current Zacks Consensus Estimate of $58.6 million.

This company is expected to post quarterly loss of $0.58 per share in its upcoming report, which represents a year-over-year change of -52.6%. Revenues are expected to be $59.2 million, down 12.9% 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 Cardlytics, 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 CDLX 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 >>>>

Cardlytics belongs to the Zacks Technology Services industry. Another stock from the same industry, CleanSpark (CLSK - Free Report) , closed the last trading session 1.9% lower at $2.65. Over the past month, CLSK has returned 9.3%.

CleanSpark's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.37. Compared to the company's year-ago EPS, this represents a change of -840%. CleanSpark currently boasts a Zacks Rank of #3 (Hold).


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