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Cambium (CMBM) Soars 5.6%: Is Further Upside Left in the Stock?
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Cambium (CMBM - Free Report) shares soared 5.6% in the last trading session to close at $48.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.1% loss over the past four weeks.
CMBM’s rally is driven by optimism over the deployment of best-in-class network and wireless broadband connectivity solutions, especially in the underserved areas of the United States, in response to the rising demand for superior Internet access to bridge the digital disparity. Driven by its flexible business model and solid cash flow, the company is well positioned to benefit from proprietary software and product ramp-up and has offered bullish guidance for 2021.
Disciplined investments in wireless fabric, rural broadband solutions and improved relationships with partners are additional tailwinds. Also, its 5G 28 GHz millimeter wave products are likely to boost its business operations in the global market, thereby offering it an edge against major rival companies. With such an optimistic outlook, robust market demand across its portfolio and diligent operational execution are expected to boost its growth trajectory in the long run.
This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +112.5%. Revenues are expected to be $88.47 million, up 42.1% 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 Cambium, the consensus EPS estimate for the quarter has been revised 12.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CMBM going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Cambium (CMBM) Soars 5.6%: Is Further Upside Left in the Stock?
Cambium (CMBM - Free Report) shares soared 5.6% in the last trading session to close at $48.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.1% loss over the past four weeks.
CMBM’s rally is driven by optimism over the deployment of best-in-class network and wireless broadband connectivity solutions, especially in the underserved areas of the United States, in response to the rising demand for superior Internet access to bridge the digital disparity. Driven by its flexible business model and solid cash flow, the company is well positioned to benefit from proprietary software and product ramp-up and has offered bullish guidance for 2021.
Disciplined investments in wireless fabric, rural broadband solutions and improved relationships with partners are additional tailwinds. Also, its 5G 28 GHz millimeter wave products are likely to boost its business operations in the global market, thereby offering it an edge against major rival companies. With such an optimistic outlook, robust market demand across its portfolio and diligent operational execution are expected to boost its growth trajectory in the long run.
This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +112.5%. Revenues are expected to be $88.47 million, up 42.1% 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 Cambium, the consensus EPS estimate for the quarter has been revised 12.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CMBM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>