DLH Holdings Corp. (DLHC) shares soared 6.6% in the last trading session to close at $11.20. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 0.2% loss over the past four weeks.
The stock is being driven by strong performance of the company’s AMS business unit, the recent IBA acquisition and long-term client relationships.
Price and Consensus
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +25%. Revenues are expected to be $62 million, up 20.5% 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 DLH Holdings Corp., the consensus EPS estimate for the quarter has been revised 11.1% 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 DLHC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see
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