Kingsoft Cloud (KC) Surges 19.0%: Is This an Indication of Further Gains?

Kingsoft Cloud Holdings Limited Sponsored ADR KC shares ended the last trading session 19% higher at $14.27. 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 7.3% loss over the past four weeks.

Kingsoft Cloud Holdings Limited Sponsored ADR benefits from AI and Intelligent Cloud, Public Cloud & Enterprise Cloud Services alongwith Xiaomi and Kingsoft ecosystem and technology and product development.

This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of -75%. Revenues are expected to be $378.12 million, up 23.7% 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 Kingsoft Cloud, the consensus EPS estimate for the quarter has been revised 27.3% 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 KC 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 >>>>

Kingsoft Cloud belongs to the Zacks Internet - Software industry. Another stock from the same industry, Getty Images Holdings, Inc. GETY, closed the last trading session 2.8% lower at $0.82. Over the past month, GETY has returned -28.1%.

Getty Images Holdings, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.03. Compared to the company's year-ago EPS, this represents a change of +400%. Getty Images Holdings, Inc. currently boasts a Zacks Rank of #2 (Buy).

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

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