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Cable One (CABO) Stock Jumps 3%: Will It Continue to Soar?

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Cable One (CABO - Free Report) shares soared 3% in the last trading session to close at $1,756.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.4% loss over the past four weeks.

The upswing in Cable One’s share price can be attributed to impressive first-quarter 2021 results.  Earnings of $11.19 per share beat the Zacks Consensus Estimate by 9.5%. Revenues increased 6.2% year over year to $341.3 million and surpassed the consensus mark by 0.9%. Markedly, residential data primary service units grew roughly 2.8% sequentially and 12.0% year over year.


Price and Consensus

Price Consensus Chart for CABO


This telecommunications company is expected to post quarterly earnings of $9.78 per share in its upcoming report, which represents a year-over-year change of -8%. Revenues are expected to be $348.62 million, up 6.2% 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 Cable One, 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 CABO 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 >>>>

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