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Cantaloupe (CTLP) Soars 6.2%: Is Further Upside Left in the Stock?

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Cantaloupe (CTLP - Free Report) shares ended the last trading session 6.2% higher at $7.16. 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% loss over the past four weeks.

The upside is driven by Cantaloupe’s strength in its robust end-to-end technology suite, which includes solutions such as micro-payment processing, self-checkout kiosks, mobile ordering and connected POS systems. The company handles more than a billion transactions annually, enhancing operational efficiency and consumer engagement across various sectors, including food and beverage, smart retail and entertainment. 

Cantaloupe’s technology integrates seamlessly with its Seed platform, offering advanced analytics, dynamic route scheduling and inventory management, giving customers comprehensive control over their operations. Recently, an insider buy transaction was undertaken by the CEO of Cantaloupe, Ravi Venkatesan, who purchased 8,000 shares of the company's common stock.

This electronic payment and wireless networking company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +150%. Revenues are expected to be $71.87 million, up 14.7% 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 Cantaloupe, the consensus EPS estimate for the quarter has been revised 16.7% 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 CTLP 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 the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Cantaloupe is a member of the Zacks Financial Transaction Services industry. One other stock in the same industry, Fidelity National Information Services (FIS - Free Report) , finished the last trading session 0.4% higher at $84.39. FIS has returned 6% over the past month.

For Fidelity National, the consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $1.29. This represents a change of +37.2% from what the company reported a year ago. Fidelity National currently has a Zacks Rank of #2 (Buy).


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