Back to top

Image: Bigstock

Can EarthLink Holdings (ELNK) Run Higher on Strong Earnings Estimate Revisions?

Read MoreHide Full Article

EarthLink Holdings Corp.  is a provider of managed network that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on ELNK’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that EarthLink Holdings could be a solid choice for investors.

Current Quarter Estimates for ELNK

In the past 30 days, 3 estimates have gone higher for EarthLink Holdings while 1 has gone lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of 2 cents a share 30 days ago, to a loss of 1 penny today, a move of 50%.

Current Year Estimates for ELNK                

Meanwhile, EarthLink Holdings’s current year figures are also looking quite promising, with 3 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from a loss of  11 cents per share 30 days ago to earnings of 5 cents per share today, a significant increase.

Bottom Line

The stock has also started to move higher lately, adding 7.8% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future.

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 >>

Published in