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Q2 Holdings QTWO shares ended the last trading session 8% higher at $65.53. 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 0.6% gain over the past four weeks.

Q2 Holdings’ stock appreciated on continued optimism surrounding the demand for cloud-based digital banking solutions. QTWO has a reputation as a top digital banking provider, offering unified retail, small business and commercial solutions. These solutions help financial institutions boost their deposits.

In the first quarter of 2024, Q2 Holdings gained significant clients in the banking sector, with signing four Tier 1 digital banking contracts. At the end of the first quarter, 58 of the top 100 Forbes banks are Q2 Holdings’ customers.

This provider of online banking software is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +385.7%. Revenues are expected to be $170.67 million, up 10.4% 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 Q2 Holdings, 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 QTWO 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 >>>>

Q2 Holdings belongs to the Zacks Business - Software Services industry. Another stock from the same industry, Tyler Technologies TYL, closed the last trading session 0.5% higher at $514.31. Over the past month, TYL has returned 7%.

For Tyler Technologies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.34. This represents a change of +16.4% from what the company reported a year ago. Tyler Technologies currently has a Zacks Rank of #3 (Hold).

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