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TEGNA Inc. (TGNA) Soars 8.5%: Is Further Upside Left in the Stock?

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TEGNA Inc. (TGNA - Free Report) shares ended the last trading session 8.5% higher at $18.72. 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 0.7% loss over the past four weeks.

The upswing in share price came on a report speculating that the company has drawn takeover interest and is soliciting revised acquisition bids by next week. Per rumours, Tegna is working with J.P. Morgan to run a sales process, with a deadline of Sep 20 to get new offers. Moreover, interested suitors include a group comprising Standard General's Standard Media and Apollo Global Management, as well as entrepreneur Byron Allen.

Price and Consensus

Price Consensus Chart for TGNA

This company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -17%. Revenues are expected to be $745.8 million, up 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 TEGNA 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 TGNA 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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