Liberty Capital Corporation (GLIBA) Moves 6.4% Higher: Will This Strength Last?

Liberty Capital Corporation (GLIBA) shares ended the last trading session 6.4% higher at $21.14. 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 15.2% loss over the past four weeks.

Liberty Capital is benefiting improving broadband subscriber trends. Concerns regarding potential market loss to competitors like Starlink has eased. The proposed acquisition of the Alaskan fiber network operator, Quintillion is expected to a major asset addition. The acquisition is expected to expand network coverage and improve system resilience. Meanwhile, management expects the company’s elevated capital spending cycle to approach its conclusion, potentially paving the way for stronger free cash flow generation in the coming years. These factors have instilled investor optimism, which probably propelled the share price appreciation.

This company is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of -81.9%. Revenues are expected to be $265.1 million, up 3.2% 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 Liberty Capital Corporation, 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 GLIBA 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 >>>>

Liberty Capital Corporation is part of the Zacks Wireless National industry. Uniti Group (UNIT), another stock in the same industry, closed the last trading session 3% lower at $5.19. UNIT has returned -41.6% in the past month.

Uniti's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.54. Compared to the company's year-ago EPS, this represents a change of -437.5%. Uniti currently boasts a Zacks Rank of #2 (Buy).

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research