Wrap Technologies, Inc. (WRAP) Soars 8.5%: Is Further Upside Left in the Stock?

Zacks Equity Research
·2-min read

Wrap Technologies, Inc. (WRAP) shares soared 8.5% in the last trading session to close at $5.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.9% loss over the past four weeks.

Wrap Technologies’ rally is largely driven by optimism over growth in demand for the company’s remote restraint solution, BolaWrap, across the world. Notably, the company has successfully sold BolaWrap products to 36 countries, with the addition of 15 new nations in 2020. Also, in March and April 2021, nine new cases of BolaWrap deployments by agencies across the United States have been reported so far.

Price and Consensus

Price Consensus Chart for WRAP
Price Consensus Chart for WRAP

This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $1.59 million, up 130.4% 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 Wrap Technologies, 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 WRAP 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 >>>>

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