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TEGNA Inc. (TGNA) Surges 5.3%: Is This an Indication of Further Gains?

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TEGNA Inc. (TGNA - Free Report) shares soared 5.3% in the last trading session to close at $20.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.7% gain over the past four weeks.

TEGNA stock appreciated on continuously increasing streaming consumption and resurgence in advertising revenues. The company is benefiting from accretive acquisitions and continuous spike in subscription revenues.

TEGNA’s buyouts of local TV stations that comprise the Big Four affiliates, along with aggressive spending on political ads are likely to aid the top line through 2022 and beyond. Moreover, increasing streaming consumption is driving demand for Premion, TEGNA’s OTT advertising solution.

This company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of -48.3%. Revenues are expected to be $786.6 million, down 16.1% 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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