Strength Seen in CS Disco (LAW): Can Its 5.3% Jump Turn into More Strength?

CS Disco LAW shares rallied 5.3% in the last trading session to close at $5.16. 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 25% loss over the past four weeks.CS Disco is benefiting from increased customer adoption of its intuitive eDiscovery platform, enhanced by advanced AI capabilities like Cecilia AI, leading to revenue growth, stronger customer retention, and expanded enterprise partnerships with Fortune 500 companies.This legal technology company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -1000%. Revenues are expected to be $36.18 million, up 1.2% 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 CS Disco, 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 LAW 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 >>>>CS Disco is a member of the Zacks Internet - Software industry. One other stock in the same industry, Zoom Communications ZM, finished the last trading session 2.3% lower at $80.45. ZM has returned -3.8% over the past month.Zoom's consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $1.31. Compared to the company's year-ago EPS, this represents a change of -7.8%. Zoom currently boasts a Zacks Rank of #1 (Strong Buy).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CS Disco, Inc. (LAW): Free Stock Analysis Report Zoom Communications, Inc. (ZM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks