eGain (EGAN – Free Report) shares ended the last trading session 14.6% higher at $6.19. 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 5.3% gain over the past four weeks.
eGain is benefiting from strong momentum in its AI Knowledge offering, with a 16% year-over-year growth in ARR in the first quarter of fiscal 2025 for AI Knowledge customers, driven by increased interest in AI and knowledge management solutions.
This maker of customer engagement software is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -81.8%. Revenues are expected to be $22.46 million, down 5.7% 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 eGain, 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 EGAN 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 >>>>
eGain belongs to the Zacks Internet – Software industry. Another stock from the same industry, Paycor HCM, Inc. (PYCR – Free Report) , closed the last trading session 0.8% higher at $19.33. Over the past month, PYCR has returned 5.8%.
For Paycor HCM
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