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Shift4 Payments (FOUR) Soars 11.0%: Is Further Upside Left in the Stock?

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Shift4 Payments (FOUR - Free Report) shares ended the last trading session 11% higher at $59.31. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.8% loss over the past four weeks.

The driving factor for the price rise can probably be linked to some acquisition rumors, fueled by multiple reports. Apparently, a number of private equity firms are eyeing to acquire FOUR but no deal has yet been finalized. Also, Shift4 Payments was entrusted with the responsibility to process online payments for timeshare rental and membership transactions of RedWeek.

This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +61.4%. Revenues are expected to be $252.69 million, up 28.5% 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 Shift4 Payments, the consensus EPS estimate for the quarter has been revised 3.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FOUR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Shift4 Payments belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Fiserv (FI - Free Report) , closed the last trading session 0.7% higher at $122.20. Over the past month, FI has returned -0.4%.

For Fiserv, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.94. This represents a change of +19% from what the company reported a year ago. Fiserv currently has a Zacks Rank of #3 (Hold).


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