Freshworks Inc. (FRSH) Soars 9.9%: Is Further Upside Left in the Stock?

Freshworks Inc. (FRSH) shares ended the last trading session 9.9% higher at $15.84. 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 12% loss over the past four weeks.

The recent surge in Freshworks share price can be contributed to investors bullish sentiments as the company keeps on adding net new customers such as Angi Home Services, Cloudera, Sterling Bank ands Thomas Cook. The company is also experiencing healthy expansion rate among existing customers which is expected to impact the top line growth in the coming quarters.

This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $125.25 million, up 29.6% 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 Freshworks Inc., 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 FRSH 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 >>>>

Freshworks Inc. is a member of the Zacks Internet - Software industry. One other stock in the same industry, Clearwater Analytics (CWAN), finished the last trading session 1.7% higher at $16.26. CWAN has returned 1.6% over the past month.

Clearwater Analytics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. Compared to the company's year-ago EPS, this represents a change of +66.7%. Clearwater Analytics currently boasts a Zacks Rank of #3 (Hold).

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