VNET Group VNET shares rallied 25.1% in the last trading session to close at $11.28. 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 0.1% gain over the past four weeks.
VNET Group benefits from strong AI-driven IDC demand, hyperscale/cloud orders, rapid MW capacity delivery, high utilization, pricing stability, and capital recycling via REITs.
This provider of carrier-neutral internet data center services is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $389.9 million, up 26% 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 VNET Group, 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 VNET 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 >>>>
VNET Group belongs to the Zacks Internet - Software industry. Another stock from the same industry, Zoom Communications ZM, closed the last trading session 0.5% lower at $102.43. Over the past month, ZM has returned 25%.
Zoom's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.41. Compared to the company's year-ago EPS, this represents a change of -1.4%. Zoom currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).