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DZS Inc. (DZSI) Stock Jumps 6.3%: Will It Continue to Soar?

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DZS Inc. (DZSI - Free Report) shares ended the last trading session 6.3% higher at $19.50. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.5% gain over the past four weeks.

DZSI’s rally is driven by optimism over fiber broadband services deployment contract from West Virginia-based Harrison Rural Electrification Association. Markedly, this $25 million project has been enabled by U.S. Department of Agriculture Rural Development Broadband ReConnect Program grant, which aims to drive economic development opportunities and deliver superior broadband connectivity to the underserved areas, thereby narrowing the digital disparity. Also, robust demand for networking and communication services, enhanced product portfolio and new customer wins on the back of a resilient supply chain ecosystem pose major tailwinds amid the pandemic resurgence.

This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -133.3%. Revenues are expected to be $78.45 million, up 11.2% 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 DZS Inc., 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 DZSI 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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