Bowman Consulting (BWMN) Surges 11.2%: Is This an Indication of Further Gains?

Bowman Consulting (BWMN) shares rallied 11.2% in the last trading session to close at $30.09. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 19% loss over the past four weeks.

The stock is benefiting from investor optimism following a major government contract expansion and continued project wins, which are expected to strengthen Bowman Consulting’s backlog and growth visibility.

This professional services firm is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $128.34 million, up 13.7% 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 Bowman Consulting, the consensus EPS estimate for the quarter has been revised 46% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BWMN 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 >>>>

Bowman Consulting is a member of the Zacks Business - Services industry. One other stock in the same industry, UL Solutions Inc. (ULS), finished the last trading session 4% higher at $86.03. ULS has returned 3.2% over the past month.

For UL Solutions Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.42. This represents a change of +13.5% from what the company reported a year ago. UL Solutions Inc. currently has a Zacks Rank of #2 (Buy).

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

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