DXC Technology Company. (DXC) Moves 6% Higher: Will This Strength Last?

DXC Technology Company DXC shares rallied 6% in the last trading session to close at $28.36. 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 0.5% gain over the past four weeks.

The upswing in DXC stock prices on Monday can be primarily be attributable to rally in the broader market for the fourth consecutive trading session on weakening dollar rates and growing optimism that inflation has peaked.

Moreover, DXC is benefiting from strength in the digital business and partnerships that are helping it expand in the cloud computing space. Acquisitions are helping DXC in gaining access to newer markets and technologies, while boosting revenues amid intensifying competition in the cloud computing and cyber security space.

This company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -18.9%. Revenues are expected to be $3.56 billion, 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 DXC Technology Company., the consensus EPS estimate for the quarter has been revised 0.7% 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 DXC 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 >>>>

DXC Technology Company. belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Grid Dynamics GDYN, closed the last trading session 0.2% lower at $19.81. Over the past month, GDYN has returned 2%.

Grid Dynamics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.12. Compared to the company's year-ago EPS, this represents a change of +9.1%. Grid Dynamics currently boasts a Zacks Rank of #3 (Hold).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DXC Technology Company. (DXC) : Free Stock Analysis Report
 
Grid Dynamics Holdings, Inc. (GDYN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research