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Strength Seen in DZS Inc. (DZSI): Can Its 6% Jump Turn into More Strength?

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DZS Inc. (DZSI - Free Report) shares soared 6% in the last trading session to close at $16.16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.5% gain over the past four weeks.

DZS is collaborating with First Electric Cooperative to offer high-speed Internet and phone service to the underserved, rural areas. It is also enabling First Electric to connect all its substations to a fiber backbone as part of the $240 million Connect2First program. In the first 9 months of the rollout process, it has connected more than 3,700 subscribers with strong U.S.-based manufacturing logistics ensuring consistent and timely access to hardware support. The company remains well ahead of schedule at the moment to bring hyper-speed connectivity to approximately 300,000 subscribers.

This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +333.3%. Revenues are expected to be $94.57 million, up 14.4% 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 DZS Inc., the consensus EPS estimate for the quarter has been revised 57.1% 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 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 >>>>

DZS Inc. belongs to the Zacks Communication - Infrastructure industry. Another stock from the same industry, Adtran (ADTN - Free Report) , closed the last trading session 1.7% higher at $17.73. Over the past month, ADTN has returned -3.1%.

Adtran's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.12. Compared to the company's year-ago EPS, this represents a change of -25%. Adtran currently boasts a Zacks Rank of #2 (Buy).

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