Crexendo (CXDO) Soars 15.1%: Is Further Upside Left in the Stock?

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Crexendo CXDO shares ended the last trading session 15.1% higher at $5.11. 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 0.5% loss over the past four weeks.

Crexendo is benefiting from strong demand for its Software Solutions and Telecom Services.

This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -58.3%. Revenues are expected to be $15.07 million, up 8.7% 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 Crexendo, 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 CXDO 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 >>>>

Crexendo belongs to the Zacks Internet - Services industry. Another stock from the same industry, Lyft LYFT, closed the last trading session 0.6% lower at $12.44. Over the past month, LYFT has returned 15.8%.

Lyft's consensus EPS estimate for the upcoming report has changed +16.7% over the past month to $0.19. Compared to the company's year-ago EPS, this represents a change of -20.8%. Lyft currently boasts a Zacks Rank of #3 (Hold).

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