VEON (VEON) Soars 6.6%: Is Further Upside Left in the Stock?

VEON Ltd. (VEON) shares rallied 6.6% in the last trading session to close at $73.97. 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 12.2% gain over the past four weeks.

Continued investments in digital capabilities and services remain a key strategy for VEON as it aims to transform lifestyles through technology-driven services in some of the world's fastest-growing emerging markets. The company has announced that its customers in Kazakhstan will be able to use Starlink Mobile on their smartphones to access apps and messaging in areas without terrestrial mobile coverage. This appeared to have propelled the shares upward.

This company is expected to post quarterly earnings of $1.95 per share in its upcoming report, which represents a year-over-year change of +71.1%. Revenues are expected to be $1.31 billion, up 17% 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 VEON, 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 VEON 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 >>>>

VEON is part of the Zacks Diversified Communication Services industry. BCE (BCE), another stock in the same industry, closed the last trading session 2% lower at $20.14. BCE has returned -12.8% in the past month.

BCE's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.49. Compared to the company's year-ago EPS, this represents a change of -14%. BCE currently boasts a Zacks Rank of #3 (Hold).

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

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