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Endava PLC Sponsored ADR (DAVA) Surges 6.0%: Is This an Indication of Further Gains?

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Endava PLC Sponsored ADR (DAVA - Free Report) shares ended the last trading session 6% higher at $51.90. 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 11.9% loss over the past four weeks.

The optimism surrounding the stock can be attributed to growing adoption of the company’s solutions and services across multiple industries. The company’s sustained focus on expanding product portfolio is helping it win new clients. Moreover, strategic acquisitions with the likes of TLM Partners and DEK are helping the company enhance its global presence and strengthen product capabilities.

This company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -34.4%. Revenues are expected to be $219.77 million, down 4.9% 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 Endava PLC Sponsored ADR, 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 DAVA 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 >>>>

Endava PLC Sponsored ADR is part of the Zacks Computers - IT Services industry. Computer Task Group , another stock in the same industry, closed the last trading session 1.4% lower at $10.21. CTG has returned -0.3% in the past month.

For Computer Task Group, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.11. This represents no change from what the company reported a year ago. Computer Task Group currently has a Zacks Rank of #3 (Hold).


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