Telecom Argentina (TEO) shares soared 5.1% in the last trading session to close at $11.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.6% loss over the past four weeks.
The uptrend was largely buoyed by a healthy digital services expansion, including cloud solutions and enterprise connectivity. The company is likely to benefit from edge computing demand, while partnerships with global tech firms enhance its IoT and cybersecurity offerings. A convergence of fixed and mobile services under unified brands and rural broadband initiatives supported by government subsidies are other tailwinds.
This telecommunications company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -30%. Revenues are expected to be $2.41 billion, up 86.7% 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 Telecom Argentina, 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 TEO 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 >>>>
Telecom Argentina is a member of the Zacks Wireline Non-US industry. One other stock in the same industry, Tele2 (TLTZY), finished the last trading session 2.4% higher at $10.28. TLTZY has returned -6.5% over the past month.
Tele2's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.1. Compared to the company's year-ago EPS, this represents a change of +66.7%. Tele2 currently boasts a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).