Yahoo Finance Manhattan Associates (MANH) Soars 3.0%: Is Further Upside Left in the Stock?
Manhattan Associates MANH shares ended the last trading session 3% higher at $240.11. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.4% gain over the past four weeks.
The increase in share price can be attributed to strong financial performance driven by growing market opportunities. Momentum in both cloud and services revenues bodes well. In the last reported quarter, Cloud subscription revenue was $78 million up 36.4% on a year-over-year basis. Services revenue was $132.2 million, up 13.8% on a year-over-year basis.
Strong cloud and services revenue growth is also driving margin performance. The company is also ramping up investments to expand its addressable market.
Despite macro uncertainty, the company remains encouraged by expanding market opportunities. It expects revenues for 2024 to increase in the range of 10-11% year over year.
This business software company is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of +9.1%. Revenues are expected to be $256.07 million, up 10.8% 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 Manhattan Associates, 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 MANH 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 >>>>
Manhattan Associates is part of the Zacks Computer - Software industry. Simulations Plus SLP, another stock in the same industry, closed the last trading session 2% higher at $48.15. SLP has returned -4.9% in the past month.
Simulations Plus' consensus EPS estimate for the upcoming report has changed -52.6% over the past month to $0.17. Compared to the company's year-ago EPS, this represents a change of -15%. Simulations Plus currently boasts a Zacks Rank of #4 (Sell).
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
Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report
Simulations Plus, Inc. (SLP) : Free Stock Analysis Report
