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Strength Seen in Shutterstock (SSTK): Can Its 9.1% Jump Turn into More Strength?

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Shutterstock (SSTK - Free Report) shares soared 9.1% in the last trading session to close at $53.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.8% loss over the past four weeks.

The upswing in shares can be attributed to Shutterstock's expanded partnership with OpenAI.

This online marketplace for royalty-free images and videos is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +25.3%. Revenues are expected to be $214.46 million, up 3.7% 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 Shutterstock, 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 SSTK 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 >>>>

Shutterstock belongs to the Zacks Internet - Content industry. Another stock from the same industry, DHI Group (DHX - Free Report) , closed the last trading session 0.6% higher at $3.60. Over the past month, DHX has returned -9.1%.

DHI Group's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. Compared to the company's year-ago EPS, this represents no change. DHI Group currently boasts a Zacks Rank of #3 (Hold).


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