Viant (DSP) Soars 7.3%: Is Further Upside Left in the Stock?

Viant Technology (DSP) shares ended the last trading session 7.3% higher at $20.56. 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 0.4% loss over the past four weeks.

The stock has recorded this price increase as the company progresses on innovation and investments in the fast-growing areas of programmatic advertising, particularly within connected TV and streaming audio.

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 +64.3%. Revenues are expected to be $52.3 million, up 22.8% 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).

Viant belongs to the Zacks Technology Services industry. Another stock from the same industry, Ivanhoe Electric (IE), closed the last trading session 1.9% lower at $6.58. Over the past month, IE has returned -6.6%.

Ivanhoe Electric's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.25. Compared to the company's year-ago EPS, this represents a change of +34.2%. Ivanhoe Electric currently boasts a Zacks Rank of #2 (Buy).

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