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Harte-Hanks (HHS) Soars 6.4%: Is Further Upside Left in the Stock?

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Harte-Hanks (HHS - Free Report) shares soared 6.4% in the last trading session to close at $7.94. 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% gain over the past four weeks.

The stock is gaining from the Elevate program that improves the company’s agility, innovation, organic growth and customer centricity, enabling it to beat stakeholders’ expectations. It also focuses on margin expansion and business optimization.

This marketing company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $46.6 million, down 2.4% 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 Harte-Hanks, the consensus EPS estimate for the quarter has been revised 41.7% 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 HHS 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 >>>>

Harte-Hanks is a member of the Zacks Advertising and Marketing industry. One other stock in the same industry, Integral Ad Science (IAS - Free Report) , finished the last trading session 1.4% lower at $9.62. IAS has returned 0.4% over the past month.

For Integral Ad Science, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.03. This represents a change of -40% from what the company reported a year ago. Integral Ad Science currently has a Zacks Rank of #3 (Hold).


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