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Strength Seen in Sangoma Technologies Corporation (SANG): Can Its 5.8% Jump Turn into More Strength?

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Sangoma Technologies Corporation (SANG - Free Report) shares soared 5.8% in the last trading session to close at $6.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.8% loss over the past four weeks.

Sangoma Technologies Corporation is benefiting from a strong focus on customer experience, leading to low churn rates and driving demand for its comprehensive IT communication solutions in the SMB market.

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +28.6%. Revenues are expected to be $61.45 million, down 2.5% 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 Sangoma Technologies Corporation, the consensus EPS estimate for the quarter has been revised 40% 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 SANG 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 >>>>

Sangoma Technologies Corporation is a member of the Zacks Internet - Software industry. One other stock in the same industry, Docebo Inc. (DCBO - Free Report) , finished the last trading session 1.4% higher at $45.49. DCBO has returned 4.2% over the past month.

For Docebo, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.25. This represents a change of +66.7% from what the company reported a year ago. Docebo currently has a Zacks Rank of #3 (Hold).


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