Back to top

Image: Bigstock

Skillsoft (SKIL) Soars 18.0%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

Skillsoft Corp. (SKIL - Free Report) shares rallied 18% in the last trading session to close at $18.01. 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 23.1% gain over the past four weeks.

The stock is benefiting from its strong position in the dynamic and growing core enterprise learning market primarily served by the content and platform segment. It  also gained from growth in the Asia markets, and customer wins and expansions.

 

This company is expected to post quarterly loss of $3.06 per share in its upcoming report, which represents a year-over-year change of +15%. Revenues are expected to be $131.39 million, down 6.9% 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 Skillsoft, the consensus EPS estimate for the quarter has been revised 10% 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 SKIL 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 >>>>

Skillsoft is a member of the Zacks Technology Services industry. One other stock in the same industry, Outbrain Inc. (OB - Free Report) , finished the last trading session 2.7% lower at $4.75. OB has returned -1.2% over the past month.

Outbrain's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.10. Compared to the company's year-ago EPS, this represents a change of -25%. Outbrain currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Outbrain Inc. (OB) - free report >>

Skillsoft Corp. (SKIL) - free report >>

Published in