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Strength Seen in CBIZ (CBZ): Can Its 6.1% Jump Turn into More Strength?

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CBIZ (CBZ) shares soared 6.1% in the last trading session to close at $39.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.9% loss over the past four weeks.

The uptick can be attributed to the company's acquisition spree and strength across all of its major service lines. CBIZ posted better-than-expected results in three of the past four quarters.

This provider of outsourced business services is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +4%. Revenues are expected to be $332.8 million, up 19.4% 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 CBIZ, 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 CBZ 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 >>>>

CBIZ is part of the Zacks Consulting Services industry. Franklin Covey (FC), another stock in the same industry, closed the last trading session 4.3% higher at $40.51. FC has returned 1.9% in the past month.

For Franklin Covey , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.18. This represents no change from what the company reported a year ago. Franklin Covey currently has a Zacks Rank of #3 (Hold).


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