Uniti Group (UNIT) shares ended the last trading session 15.8% higher at $9.38. 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 3.5% gain over the past four weeks.
The uptrend was largely buoyed by speculative media reports that revealed that telecom carriers like T-Mobile are mulling to buy its fiber assets as well as its enterprise business. An outright acquisition bid is also making the rumor mills. Although UNIT is yet to initiate any formal sale process, it is reportedly open to reviewing any potential lucrative offer, likely propelling the shares high.
This real estate investment trust is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of -625%. Revenues are expected to be $916.33 million, up 211.8% 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 Uniti, the consensus EPS estimate for the quarter has been revised 25.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on UNIT 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 >>>>
Uniti is part of the Zacks Wireless National industry. T-Mobile (TMUS), another stock in the same industry, closed the last trading session 1.8% lower at $210.03. TMUS has returned -1% in the past month.
For T-Mobile, the consensus EPS estimate for the upcoming report has changed -3.2% over the past month to $2.27. This represents a change of -12% from what the company reported a year ago. T-Mobile currently has a Zacks Rank of #3 (Hold).
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Uniti Group Inc. (UNIT): Free Stock Analysis Report
T-Mobile US, Inc. (TMUS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).