Viant (DSP) Surges 5.8%: Is This an Indication of Further Gains?

Viant Technology (DSP) shares soared 5.8% in the last trading session to close at $10.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.7% loss over the past four weeks.

The stock recorded this price increase as the company benefits from customer wins, and rising Connected TV and streaming audio demand. The performance was further bolstered by a swift adoption of the company’s addressability solutions and the expansion of the ViantAI product suite.

This advertising software company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +53.3%. Revenues are expected to be $103.18 million, up 89.8% 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 Viant, 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 DSP 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 >>>>

Viant is a member of the Zacks Technology Services industry. One other stock in the same industry, Parsons (PSN), finished the last trading session 0.9% lower at $65.45. PSN has returned -3.6% over the past month.

Parsons' consensus EPS estimate for the upcoming report has changed -7.1% over the past month to $0.7. Compared to the company's year-ago EPS, this represents a change of -10.3%. Parsons currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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