Climb Global Surges 5.1%: Is This an Indication of Further Gains?

Climb Global Solutions CLMB shares rallied 5.1% in the last trading session to close at $59.94. 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 2.6% gain over the past four weeks.

The stock is benefitting from organic growth from new and existing vendors in North America and Europe, as well as contributions from DataSolutions.

This computer software reseller is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $97.27 million, up 19% 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 Climb Global, 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 CLMB 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).

Climb Global is part of the Zacks Technology Services industry. Microvast Holdings, Inc. MVST, another stock in the same industry, closed the last trading session 9.5% higher at $0.48. MVST has returned 24.3% in the past month.

For Microvast, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. This represents a change of -150% from what the company reported a year ago. Microvast currently has a Zacks Rank of #3 (Hold).

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