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TriNet (TNET) Moves 4.2% Higher: Will This Strength Last?
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TriNet Group (TNET - Free Report) shares rallied 4.2% in the last trading session to close at $101.10. 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 7% loss over the past four weeks.
The stock is benefiting from growth in professional services revenues, driven by volume and normal rate increase, and insurance revenue growth due to a rise in annual inflationary rates.
This human resources services outsourcing company is expected to post quarterly earnings of $1.24 per share in its upcoming report, which represents a year-over-year change of -28.7%. Revenues are expected to be $301.76 million, down 11.5% 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 TriNet, 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 TNET going forward to see if this recent jump can turn into more strength down the road.
TriNet belongs to the Zacks Outsourcing industry. Another stock from the same industry, Automatic Data Processing (ADP - Free Report) , closed the last trading session 0.6% higher at $235.63. Over the past month, ADP has returned -4.9%.
ADP's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.07. Compared to the company's year-ago EPS, this represents a change of +9.5%. ADP currently boasts a Zacks Rank of #3 (Hold).
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TriNet (TNET) Moves 4.2% Higher: Will This Strength Last?
TriNet Group (TNET - Free Report) shares rallied 4.2% in the last trading session to close at $101.10. 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 7% loss over the past four weeks.
The stock is benefiting from growth in professional services revenues, driven by volume and normal rate increase, and insurance revenue growth due to a rise in annual inflationary rates.
This human resources services outsourcing company is expected to post quarterly earnings of $1.24 per share in its upcoming report, which represents a year-over-year change of -28.7%. Revenues are expected to be $301.76 million, down 11.5% 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 TriNet, 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 TNET going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
TriNet belongs to the Zacks Outsourcing industry. Another stock from the same industry, Automatic Data Processing (ADP - Free Report) , closed the last trading session 0.6% higher at $235.63. Over the past month, ADP has returned -4.9%.
ADP's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.07. Compared to the company's year-ago EPS, this represents a change of +9.5%. ADP currently boasts a Zacks Rank of #3 (Hold).