DLH Holdings Corp. (DLHC) shares rallied 9.7% in the trading session on Jan 10 to close at $20.11. 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 20.7% gain over the past four weeks.
The stock is being driven by strong organic growth, the recent IBA acquisition and long-term client relationships.
This company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +269.2%. Revenues are expected to be $158 million, up 173.1% 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 DLH Holdings Corp., 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 1 (Strong Buy). You can see
the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
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