Strength Seen in SecureWorks (SCWX): Can Its 20.4% Jump Turn into More Strength?

Core Viewpoint - SecureWorks (SCWX) shares experienced a significant increase of 20.4% to close at $8.73, following news of a potential sale by its parent company, Dell Technologies [1][2]. Company Summary - SecureWorks' stock price surged due to an exclusive report indicating that Dell Technologies is exploring a sale of the cybersecurity firm, with investment bankers from Morgan Stanley and Piper Sandler engaged to find potential buyers [2]. - The upcoming quarterly earnings report for SecureWorks is expected to show earnings of $0.01 per share, reflecting a year-over-year increase of 110%, while revenues are projected to be $80.98 million, a decrease of 12.9% from the previous year [3]. - The consensus EPS estimate for SecureWorks has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [4]. Industry Summary - SecureWorks is categorized within the Zacks Computers - IT Services industry, where another company, SAIC, closed 0.6% higher at $129.22, with a 3.3% return over the past month [4]. - SAIC's consensus EPS estimate has decreased by 1% over the past month to $1.86, representing a year-over-year decline of 9.3%, and it currently holds a Zacks Rank of 4 (Sell) [5].