LivePerson LPSN shares soared 7.3% in the last trading session to close at $26.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 23.5% loss over the past four weeks.
LivePerson’s stock appreciated on continued optimism surrounding the demand for its products. The company is benefiting from the accelerated digital transformation projects across a number of industries amid the ongoing pandemic crisis. Organizations have been reconfiguring their set-up for enabling a meaningful connection with consumers.
Also, healthy demand for its LiveEngage product from contact center businesses has been a key growth driver. Improvement in product quality and performance, multiple product launches and increased pricing have boosted its top-line performances over the last few quarters.
This customer-service technology company is expected to post quarterly loss of $0.49 per share in its upcoming report, which represents a year-over-year change of -5000%. Revenues are expected to be $123.74 million, up 21.2% 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 LivePerson, 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 LPSN 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 >>>>
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LivePerson, Inc. (LPSN): Free Stock Analysis Report
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