DLH Stock Jumps 9.8%: Will It Continue to Soar?

DLH Holdings Corp. DLHC shares rallied 9.8% in the last trading session to close at $10.76. 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 11.3% loss over the past four weeks.

The stock is benefiting from revenue growth due to expansions within the company's health and Enterprise IT Management portfolios.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $103 million, up 0.7% 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 DLH, 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 DLHC 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).

DLH is part of the Zacks Staffing Firms industry. HireQuest, Inc. HQI, another stock in the same industry, closed the last trading session 1.5% higher at $12.30. HQI has returned -7.4% in the past month.

HireQuest's 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 -20%. HireQuest currently boasts a Zacks Rank of #4 (Sell).

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