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Strength Seen in V2X (VVX): Can Its 5.3% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

V2X (VVX) shares ended the last trading session 5.3% higher at $49.72. 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 6.4% gain over the past four weeks.

The stock is benefiting from the company’s continued expansion of business in the Pacific and Middle East regions, strong cash generation with low capital expenditure.

This government services company is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of -14.9%. Revenues are expected to be $1.02 billion, up 4.3% 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.

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For V2X, 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 VVX 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 >>>>

V2X is part of the Zacks Technology Services industry. Vivid Seats Inc. (SEAT), another stock in the same industry, closed the last trading session 1.7% higher at $5.37. SEAT has returned 3.1% in the past month.

For Vivid Seats , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. This represents a change of -65% from what the company reported a year ago. Vivid Seats currently has a Zacks Rank of #4 (Sell).

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V2X, Inc. (VVX) : Free Stock Analysis Report

Vivid Seats Inc. (SEAT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research